Purchase Solution

Explanation of savings rate decline

Not what you're looking for?

Ask Custom Question

During the 1990s, the age cohort that grew the most rapidly was the 45-54 cohort, which has the highest saving rate. Yet during that same period, the personal saving rate as reported by BEA declined sharply. I'm not sure I understand what factors account for this divergence?

Purchase this Solution
Solution Summary

The decline of the personal saving rate in the 90s is uncovered.

Solution Preview

During the 1990s, the personal saving rate declined even there was a large number of baby boomers who were in their peak saving years. Because the housing and mortgage market conditions of the 1990s with low interest rates, down payments and the ...

Solution provided by:
Umut Oltulu, MBA
Education
  • BSc, Dokuz Eylul University
  • MBA, Texas A&M University-Kingsville
Recent Feedback
  • "Thanks"
  • "Thanks"
  • "This is a great help...Thank you"
  • "Thanks for the advice!"
  • "Oh my gosh u are awesome... A++"
Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

View More Free Quizzes
Related BrainMass Solutions

  • Economy Shrank last quarter

    GDP declined by an annual rate of 0.3%. This means that if this rate continued for a year, the total decline would be 0.3%.

  • effect of changing the savings rate on consumption

    Calculate and describe the effect of changing the savings rate on the multiplier. ? Describe the likely changes to consumption and equilibrium GDP due to a decline in the savings rate.

  • Money Supply: Six Questions

    The global savings glut is a situation where the savings are higher than investment. This causes a fall in long term interest rates. Also, the result of the savings glut was a decline in the global real long term interest rates. Step 6 False.

  • Neoclassical Model & Growth Accounting Equation

    In the real world, you can see this in countries such as Russia that are undergoing demographic decline. If you need more explanation, please let me know before rating!

  • Macro Equilibrium and Business Cycle Problems

    ( b ) What is the real value of your savings if the price level declines by 10 percent? 4. According to the News on page 162 (attached) ( a ) By what percentage did GDP decline in the fourth quarter of 2008?

  • An upward sloping supply curve

    419432 An Upward Sloping Supply Curve If the supply curve of savings is upward sloping, a comprehensive wealth tax will: a. increase the market rate of interest. b. reduce the market rate of interest. c. have zero excess burden.

  • Statistics -savings rates in the US

    According to the Bureau of Economic Analysis, the savings rate of American households, defined as a percentage of the disposable personal income, was 4.20% in 2009. The reported savings rate is not uniform across the country.

  • Suppose you are offered a savings account with an annual percentage rate of 4%

    493559 Suppose you are offered a savings account with an annual percentage rate of 4% Suppose you are offered a savings account with an annual percentage rate of 4%. The effective annual rate will be?

  • How do you come up with a cash flows statemement?

    Labor and Materials = 65% of sales 2. Admin costs = 5% of sales 3. **Depreciation = 200% decline method **Presses are considered 7 year property. 4. 15% hurdle rate 5.

View More Related Solutions