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Relationship between income and consumption

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Describe the relationship between income and consumption as documented in Exhibits 1 and 2 in ECON Chapter 9? How did the ratio of income to consumption change between 1975 and 2012?

How do prices, interest rates and consumer expectations impact consumption?

What happens if spending exceeds real GDP? What happens if Real GDP exceeds spending? Which is worse for consumers?

Reference no: EM131613438

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