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Macro 1
Essay specific features
Written by:
Steven D
Date added:
July 12, 2013
Level:
University
Grade:
A
No of pages / words:
3 / 804
Was viewed:
8811 times
Rating of current essay:
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...
displayed 300 characters
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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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