The U.S. personal savings rate for the first quarter of 2012 dropped to its lowest level since the start of the recession. Americans stashed away 3.6 percent of personal income in the first quarter, down from 4
2 percent in the fourth quarter and a near-term peak of 6.2 percent in the second quarter of 2009. Which of the following could explain this drop in savings? A) a decrease in wealth from a fall in stock prices
B) a rise in the real interest rate
C) an increase in disposable income as the job market recovers
D) a rise in consumer confidence that their incomes will be higher in the future
D
You might also like to view...
The figure above shows an education market in which the government is providing households with vouchers. In total, how much do the schools receive for a student?
A) $4,000 B) $8,000 C) $12,000 D) $16,000 E) $20,000
The Cost-Benefit Principle:
A. provides little insight into how people actually chose between alternatives. B. provides an abstract model of a rational person should choose between alternatives. C. describes how people behave once they have enough education. D. fully captures how people choose between alternatives.