Key Concepts: Consumption and Saving, Investment, Government Spending, Net Exports, The Aggregate Expenditures Function

U.S. Department of Commerce—Personal Savings Rate

Scroll down the web page to review the "PSAVERT" (Seasonally Adjusted Personal Savings Rate) information since 1959.

• Estimate the "average" U.S. personal savings rate during the period 1959–1991. Compare this to the average rate of the past ten years. Explain its potential affect on the aggregate expenditure.
• Identify potential determinants of consumption that may be responsible for the current trend in the U.S. personal savings rate.
• Review the U.S. "real disposable income" information at the Bureau of Economic Analysis. Identify the potential factor(s) that may explain the surge in real disposable income from 1999–2001.