Which of the Following Statements Is Most Correct

question 70

Multiple Choice

Which of the following statements is most correct?

• A)The personal savings rate in the United States, which is personal savings as a percentage of disposable personal income, increased from 2.4 percent to 4.6 percent from 2006 to 2009, due largely to the fact that individuals began to save more because of the economic uncertainties created by the financial crisis of 2007-09.
• B)The personal savings rate in the United States, which is personal savings as a percentage of disposable personal income, decreased from 4.6 percent to 2.4 percent from 2006 to 2009, due largely to the fact that individuals began to spend more because of the economic realities created by the financial crisis of 2007-09.
• C)The personal savings rate in the United States, which is personal savings as a percentage of disposable personal income, increased from 10.1 percent to 20.5 percent from 2006 to 2009, due largely to the fact that individuals began to save more because of the economic uncertainties created by the financial crisis of 2007-09.
• D)The personal savings rate in the United States, which is personal savings as a percentage of disposable personal income, declined from 45 percent to 40 percent from 2006 to 2009, due largely to the fact that individuals began to spend more because of the economic realities created by the financial crisis of 2007-09.
• E)none of the above.

---

Definitions:

Sales Price

The amount of money for which a product or service is sold to customers, not necessarily reflecting the cost of production or provision.

Contribution Margin

The amount by which a product's selling price exceeds its total variable costs, indicating how much contributes to covering fixed costs and generating profit.

Fixed Costs

Costs that do not change with the level of output or sales, such as rent, salaries, and insurance.

Depreciation Expense

An accounting method used to allocate the cost of a tangible asset over its useful life, representing how much of an asset's value has been used up over time.