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With an increase in consumer spending, there will be an increase in demand for goods/services, and therefore an increase in production, which drives the economy up.
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∙ 15y ago
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What Factors affect consumer spending?
The factors that affect consumer spending are: Size of Income, Future Expenditures, and Social Influences.
What is the consequences of consumer economic decisions in a free enterprise economy?
In a free enterprise economy, the consumer economic decisions can affect the price and supply of a commodity. When the consumers show interest in a product (demand), there will be an increase in the number of producers willing to supply it.
How do changes in monetary policy affect your family's spending and business spending in the economy?
[If the Federal Reserve is selling bonds, banks will have lower reserves due to decreased deposits. With the decreased reserves, they will have to decrease the number and size of loans. The decrease in loans and the resulting higher interest rates discourage business (and consumer) borrowing and spending. The decreased spending in the economy should result in decreased business production and employment.]
How does consumer confidence affect the economy?
Increases purchases from producers
Why does wealth affect consumer spending?
If you have more then you can spend more unless you chose to save it
What Factors affect consumer spending?
The factors that affect consumer spending are: Size of Income, Future Expenditures, and Social Influences.
How did unemployment affect consumer spending?
it equals E=mc2
What is the consequences of consumer economic decisions in a free enterprise economy?
In a free enterprise economy, the consumer economic decisions can affect the price and supply of a commodity. When the consumers show interest in a product (demand), there will be an increase in the number of producers willing to supply it.
How do changes in monetary policy affect your family's spending and business spending in the economy?
[If the Federal Reserve is selling bonds, banks will have lower reserves due to decreased deposits. With the decreased reserves, they will have to decrease the number and size of loans. The decrease in loans and the resulting higher interest rates discourage business (and consumer) borrowing and spending. The decreased spending in the economy should result in decreased business production and employment.]
How does consumer confidence affect the economy?
Increases purchases from producers
Why does wealth affect consumer spending?
If you have more then you can spend more unless you chose to save it
How might psychological factors affect the business cycle?
optimism can lead to increased consumer spending and greater business productivity.Pessimism can make people more cautious,reducing consumer spending.
What are the factors influencing consumption expenditure?
Factors influencing consumption expenditure include income levels, consumer confidence, interest rates, inflation, and cultural factors. Changes in any of these factors can affect consumer spending patterns and overall consumption levels in the economy.
How did Ferrari affect the economy?
They help increase cash flow.
How does the government fiscal policy affect the economy?
When inflation increase
How did government spending affect the economy-?
Federal spending on forgein aid increased demand for U.S goods.
How would an increase in total expenditures affects the national's economy?
An increase in total expenditures affect the nation's economy would cause an expansion.
