The decline in the U.S. personal savings rate between 1980 and 2005 can be explained by:
A) large gains in the housing and stock markets.
B) increased company pension funds.
C) extremely low bank saving interest rates.
D) rising discount factors.
E) the aging of the U.S. population.

Question

Quizplus · Accepted Answer

The large gains in the housing and stock markets during this time period may have led individuals to perceive their wealth as higher, thus leading to a decrease in personal savings.

The Decline in the U