Asked by Priscilla Johnson on Jun 06, 2024

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The United States savings rate

A) is higher than the Chinese savings rate.
B) was 10 percent in 2005.
C) was the most important factor contributing to the high economic growth rate since 1995.
D) usually goes up during and soon after a recession.

Savings Rate

The proportion of income that is saved rather than spent over a specific period.

Economic Growth

The process by which the economic well-being and quality of life of a nation improve over time.

  • Comprehend the progression of the savings rate in the United States and its impact on the economy.
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Nastaran MoghtaderJun 13, 2024
Final Answer :
D
Explanation :
The statement "usually goes up during and soon after a recession" is true. When there is a recession, people tend to save more money as they are uncertain about their financial future. This increased savings rate helps to stabilize the economy and contribute to its recovery. After a recession, the savings rate tends to remain higher than before as people are more cautious with their spending. However, none of the other statements are true. The Chinese savings rate is actually higher than the U.S. savings rate, the U.S. savings rate was not the most important factor contributing to economic growth since 1995, and the statement about the 2005 savings rate is not necessarily true for every year.