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Macro 1

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Issue:

Business

 

Written by:

Steven D

 

Date added:

July 12, 2013

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 804

 

Was viewed:

8818 times

 

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Essay content:

So when consumers feel optimistic about their future, they will generally spend more and save less at any given level of disposable income. Reversely if consumers feel pessimistic about their future then the opposite will occur, where they will spend less and save more at all level of disposable income...
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An example of where the exogenous consumption would increase would be in times of economic boom, where share prices rise and property prices increase. Consumers would feel wealthier and hence tend to spend more rather than save, therefore increasing exogenous consumption. In times of economic recession however, consumers would feel poorer and uncertain, so they would save more and spend less hence driving exogenous consumption down...
displayed 300 characters

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