Americans Spend Less as Prices Keep Rising

The video discusses the monthly deflator and PCE index, highlighting inflation concerns for the Fed. It notes an increase in personal income and a slight rise in spending, suggesting that Americans are saving more despite having more money. The video also explores the potential economic slowdown due to higher interest rates, questioning how quickly this will occur. Predictions suggest that savings rates might decrease, but as long as incomes are replaced, spending will continue.

What was the monthly increase in the deflator, and how did it affect the yearly deflator?

• Up 6/10, pushing the yearly deflator to 6.4%

• Up 4/10, pushing the yearly deflator to 6.2%

• Up 7/10, pushing the yearly deflator to 6.5%

• Up 5/10, pushing the yearly deflator to 6.3%

How did personal incomes change compared to the previous month?

• Increased by 1%

• Decreased by 0.5%

• Increased by 0.5%

• No change

What was the change in spending after a 2.1% gain the previous month?

• Down 1%

• Up 2/10 of a percent

• Up 1%

• No change

What is the main concern regarding the economy in the face of higher interest rates?

• Slowing economic growth

• Decreasing exports

• Rising inflation

• Increasing unemployment

What is predicted about the savings rate despite higher incomes?

• It will remain unchanged

• It will decrease as people spend more

• It will increase significantly

• It will fluctuate unpredictably