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Household expenditures will increase as a result of rising costs of essential goods and services, such as food, housing, and healthcare. Inflation can lead to higher prices, prompting families to allocate more of their budgets toward these necessities. Additionally, increased consumer spending driven by economic recovery or stimulus measures can further elevate household expenditures. Lastly, any changes in interest rates affecting loans and mortgages can also impact overall spending.

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5mo ago

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What economic changes will decrease household expenditures?

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Business investment expenditures that depend on income or production (especially national income or gross national product). An increase in national income triggers an increase in induced investment expenditures.


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