The key determinant of consumption and spending

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Reference no: EM13832727

Choose from the following terms in your answer:

expectations taxes wealth income

household debt interest rate

Keynesian economists think that _________the key determinant of consumption and spending.

Classical economists think that the higher the_______ , the more people will save, which means that they will consume less.

A person's _______about how much income he/she will earn in the future as well as future prices could shape how much he/she spends and saves today.

The More________ a person has, the less current consumption he/she undertakes.

A person's total income can be divided into three components: consumption, savings, and_________Savings, which is total income minus consumption and taxes, can be used to create more_____.

Reference no: EM13832727

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