In the 2000s,low savings rates are attributed to
A)rapid economic growth.
B)stock market boom.
C)declining interest rates and increased refinancing of the mortgages.
D)inefficient monetary policy.

Question

Quizplus · Accepted Answer

Declining interest rates and increased refinancing of mortgages in the 2000s led to lower savings rates. As people were able to obtain cheaper loans or lower mortgage payments through refinancing, they had less incentive to save. The stock market boom and rapid economic growth in the early 2000s may have also contributed to a sense of optimism and reduced the perceived need to save for the future. However, inefficient monetary policy does not seem to be a significant factor in explaining the low savings rates during this period.

In the 2000s,low Savings Rates Are Attributed to