Figure 16.6: Personal Savings Rate
-Consider Figure 16.6. A likely explanation for the rise in savings rates beginning in 2007 is the continued strength in stock and housing markets.

Question

Figure 16.6: Personal Savings Rate 
-Consider Figure 16.6. A likely explanation for the rise in savings rates beginning in 2007 is the continued strength in stock and housing markets.

Quizplus · Accepted Answer

The rise in savings rates beginning in 2007 can be attributed to the onset of the Great Recession, which caused households to become more cautious with their spending and prioritize saving over investing in the stock and housing markets.