The determinants of consumption include factors such as income levels, consumer confidence, interest rates, and wealth. Higher disposable income typically leads to increased consumption as people have more resources to spend. Additionally, consumer confidence can influence spending habits; when individuals feel optimistic about the economy, they are more likely to spend. Interest rates also play a role, as lower rates can encourage borrowing and spending, while higher rates may discourage it.
They are : desired spending, autonomous consumption,induced consumption and desired private consumption.
discuss the determinant of money demand
Income and taxes
There are many determinants of personality. These determinants are largely dependent on the environment that a child grows up in.
The immediate determinants of investment are: (a) the expected rate of return and (b) the real rate of interest.
subjective and objective determinants of consumption
Objective determinants of consumption include factors such as income, prices, and interest rates that impact how much individuals can afford to spend. Subjective determinants of consumption involve personal preferences, tastes, and attitudes towards saving and spending that influence consumer behavior. Both types of determinants interact to shape overall consumption levels in an economy.
Cite and briefly discuss the main determinants of economies of scale.
They are : desired spending, autonomous consumption,induced consumption and desired private consumption.
discuss the determinant of money demand
Income and taxes
There are following non-income determinants 1.wealth 2.Expenditure 3.Investment 4.House-hold debts 5.Interest rate
h kh klhk
Incomes and prices are seen as consumption's two major determinants. The determinants are as follows 1) Current disposable income 2) Relative income 3) Life cycle income 4) Wealth 5) Price Level 6) Rate of Interest 7) Expected future income 8) Others: advertisement, social safety-net, availability or scarcity of loan, geographical location, weather etc.
The Equi-Marginal Principle can be applied to both consumption as well as production Discuss this statement with the help of an example?
What is a Motivants and Determinants
There are many determinants of personality. These determinants are largely dependent on the environment that a child grows up in.