Complete the exercise on the web located on page 102 in the

Complete the exercise \"on the web\" located on page 102 in the text. Research whether the personal savings rate in the United States is on a trend of rising or falling. Comment on your conclusions-why do you think this trend is happening? Write at least a paragraph.

that ilI y Two other factors you can earn a high rate of interest on your savings, if you could earn just 1 or 2 percent. When there\'s a high rate of infilation, peonle to spend their money on consumer goods and services, before prices rise still a high infation rate tends to discourage saving. After all, would you want to jus i more your money while it loses its value? ust saving by individuals, but also by busi firms and government. Near the end of this chapter we\'ll talk about our total nationg saving, and its decline over the last 25 years. on the web You can check our personal saving rate monthly by going to wwv.bea.gov. Then click on \"Personal Income and Outlays.\" The big question is whether our personal saving rate will be above or below 0 Average Propensity to Consume and Average Propensity to Save The average propensity to consume (APC) is the percentage of disposable incom Average propensity to consume (APC) is the percentage of disposable income that is spent; consumption divided by disposable income. spent. Using the data in Table 2, let\'s calculate the APC. To find the percentage of disposable income spent, we need to divide co by disposable income nsump Consumption $30,000 3 Disposable income $40,000 4 APC Disposable income is after tax incone =0.75 Let\'s review how this is done. We use the three-step method of solving this problem y e the formula. Then, substitute the numbers into the for writ Consumption Disposable income APC = The average propensity to save (APS) is th formula. Finally, solve the for the percentage of disposable income saved. Usi ul Average propensity to save (APS) is the percentage of ng the data in Table 2, calculate r image of the APC. The AP income that is saved

Solution

After getting to read the paragraph, it can be observed that there\'s a decrease in the savings of the United States and this is all because of the increase in the inflation rate where the increase in the inflation rate which discourages the people\'s intent to save more as there\'ll be a fall in money. Therefore, with the increase in the inflation rate, the people can be driven towards the purchase of the certain products like gold where the value can increase after a considerable amount of time on the whole.