Questions:

Examine the table displaying the U.S. personal savings rate for the years 1929-2000.

1. Why did the personal savings rate become negative during the years 1932-1934 and during 1938?
2. Is the personal savings rate during the 1990s higher or lower, on average, than the savings rate during the previous three decades?
3. Suppose that government purchases and net exports remain constant. What would happen to investment if the personal savings rate decreases?