Rising savings rates in emerging countries in the period 2000-2008 are associated with both falling and rising mortgage interest rates in the United States.

Question

Quizplus · Accepted Answer

Rising savings rates in emerging countries would increase the supply of funds available for lending, which could put downward pressure on mortgage interest rates. However, other factors could also be affecting mortgage interest rates in the United States during this period, leading to both rising and falling rates. Nevertheless, the statement that rising savings rates in emerging countries are associated with both falling and rising mortgage interest rates in the US is generally true.

Rising Savings Rates in Emerging Countries in the Period 2000-2008