The global savings glut can be defined as:
A)the increase in foreign savings moving into the United States in search of investment opportunities.
B)the rapid increase in personal saving rates in the United States leading to increased lending to foreign countries.
C)the response of U.S.savings to low interest rates in the early 2000s.
D)the decline in saving rates globally.
E)the precautionary savings increase in response to the establishment of the Euro.

Question

Quizplus · Accepted Answer

The global savings glut refers to the increase in foreign savings moving into the United States in search of investment opportunities. This phenomenon was identified by former Fed Chairman Alan Greenspan in the mid-2000s, as foreign investors flooded the US with capital looking for higher returns.

The Global Savings Glut Can Be Defined As