I live out in the country or what some people call rural.  Do you live in a rural area?
No I live in a city but I do have friends living outside towns and cities.
Is most of America living in rural settings?
Yup more than 50% of the population is living in rural communities 
I was thinking that.  Isn't it cheaper to live in a rural setting than in a big city?
Yea pretty much, predominantly rural regions have less than 15 percent of the on going inflation rate.
I imagine that life is slower and more relaxed in rural areas as well too, right?
I am not sure but I can see why since population density is less than 150 people per square kilometre. 
What is the population density in a city?  I am just asking so I can reference the difference between the two.
Population density in most cities is about over 500 per square kilometres