Asked by Montero Bradford on May 25, 2024
Verified
Which statement is false?
A) The U.S.personal savings rate fell steadily from the mid-1990s to the present.
B) The U.S.personal savings rate is lower than that of most other economically advanced countries.
C) Americans have been poor savers for generations.
D) A country's savings rate has very little effect on its productivity rate.
Savings Rate
The fraction of disposable income that is saved instead of spent on various goods and services.
Productivity Rate
A measure of the efficiency of production, often quantified as the ratio of outputs to inputs in a given time period.
- Identify the changes in the United States' savings rate and their consequences for economic health.
Verified Answer
AB
Amrit BajwaMay 29, 2024
Final Answer :
D
Explanation :
A country's savings rate has a significant impact on its productivity rate. High savings rates lead to increased investments in capital goods, which in turn leads to higher productivity levels. Low savings rates can lead to a lack of investment and slow economic growth. Therefore, statement D is false.
Learning Objectives
- Identify the changes in the United States' savings rate and their consequences for economic health.