Bruce Steinberg,a Merrill Lynch economist,takes the view that

A) in calculating the savings rate,the government consistently overestimates the amount Americans save
B) if realized capital gains were counted as income,the savings rate would be higher
C) if realized capital gains were counted as income,the savings rate would be lower
D) expenses rise to meet income,thus the national savings rate will always be rather low

Question

chetna dubay · Accepted Answer

Final Answer : B, Explanation :  Merrill Lynch economist Bruce Steinberg believes that if realized capital gains were counted as income, the savings rate would be higher. This is because these gains are a form of income that people can save, but they are not currently counted in the calculation of the savings rate.

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