Question

In what ways might household saving rates reflect both the economic culture and

history of a country? (Short answer please)

Answer 1

Answer: People tend to save when they feel the future economy is going to be harsh. People tend to save less when they expect the future economy to be strong.

Explanation: Academics and financial planners recommend people save when times are good so that they can spend when times are bad. However, people tend to do the opposite.