Explanations for the low U.S. saving rate include all of the following EXCEPT:
A) government programs that provide income for the elderly.
B) low down payments required to purchase homes.
C) large capital gains in the stock market.
D) low real interest rates relative to the rest of the world.

Question

Quizplus · Accepted Answer

While the stock market has continued to yield strong gains over time, the expansion of Social Security in the U.S. has given households more confidence in their financial futures. Furthermore, low down payments required to purchase homes has also help decreased the need for saving. However, low real interest rates relative to the rest of the world is not a reason for lower U.S. savings rates.

Explanations for the Low U