Refer to the following figure when answering the following questions.
Figure 16.5: U.S. Household Net Worth
-Based on Figure 16.5, personal savings generally ________ over the period. However, personal savings ________ between roughly 2007 and 2009, which was likely due to ________.
A) fell; rose; precautionary savings
B) fell; fell; negative interest rates
C) rose; rose; an increase in interest rates
D) rose; rose; the wealth effect
E) fell; rose; higher gas prices

Question

Refer to the following figure when answering the following questions.
Figure 16.5: U.S. Household Net Worth 
-Based on Figure 16.5, personal savings generally ________ over the period. However, personal savings ________ between roughly 2007 and 2009, which was likely due to ________.
A) fell; rose; precautionary savings 
B) fell; fell; negative interest rates 
C) rose; rose; an increase in interest rates 
D) rose; rose; the wealth effect 
E) fell; rose; higher gas prices

Quizplus · Accepted Answer

Personal savings generally fell over the period, but there was an increase between roughly 2007 and 2009. This increase can be attributed to precautionary savings, where individuals save more due to economic uncertainty, which was significant during the financial crisis around that time.

Refer to the Following Figure When Answering the Following Questions