Consumer Spending And Saving/dissaving Flashcards
(40 cards)
What is consumer spending?
Consumer spending is the total amount of money spent by households on goods and services.
True or False: Saving is the act of setting aside money for future use.
True
Fill in the blank: Dissaving occurs when consumers _____ their savings.
deplete
What are the main factors influencing consumer spending?
Income, consumer confidence, interest rates, and inflation.
Multiple Choice: Which of the following is a component of consumer spending? A) Investments B) Government spending C) Durable goods D) Exports
C) Durable goods
What is the relationship between consumer confidence and consumer spending?
Higher consumer confidence generally leads to increased consumer spending.
True or False: An increase in interest rates typically encourages consumer spending.
False
What does the term ‘marginal propensity to consume’ (MPC) refer to?
MPC refers to the proportion of additional income that a household spends on consumption.
Fill in the blank: When consumers expect economic downturns, they tend to _____ their spending.
reduce
Multiple Choice: Which of the following can lead to increased savings? A) Higher taxes B) Increased disposable income C) Economic uncertainty D) All of the above
D) All of the above
What is a key indicator of consumer spending in an economy?
Retail sales data.
True or False: Saving rates tend to rise during economic expansions.
False
What is the impact of inflation on consumer savings?
Inflation can erode the purchasing power of savings, making it less attractive to save.
Fill in the blank: The _____ effect describes how consumers’ expectations about future income affect their current spending.
wealth
Multiple Choice: Which demographic factor can significantly affect consumer spending patterns? A) Age B) Gender C) Education D) All of the above
D) All of the above
What is the difference between gross savings and net savings?
Gross savings is the total amount saved, while net savings accounts for any dissavings.
True or False: Consumer debt levels can impact consumer spending.
True
What role do government policies play in consumer spending?
Government policies, such as tax incentives and interest rate adjustments, can stimulate or restrain consumer spending.
Fill in the blank: Economic _____ can lead to increased consumer spending due to higher job security.
growth
What is the term for the economic theory that suggests consumer spending drives economic growth?
Keynesian economics.
What is consumer spending?
Consumer spending is the total amount of money spent by households on goods and services.
True or False: Saving is the act of setting aside money for future use.
True
Fill in the blank: Dissaving occurs when consumers _____ their savings.
deplete
What are the main factors influencing consumer spending?
Income, consumer confidence, interest rates, and inflation.
