Determinant Consumption Income (decrease) (Increase) Assets held (increase in) Taxation ( increase ) ( Decrease) Cost of credit (High of interest rates) Expectations (that prices will decrease) Tastes and attitudes (people want to consume more) The average age of durables (increases)

Determinant Consumption Income (decrease) (Increase) Assets held (increase in) Taxation ( increase ) ( Decrease) Cost of credit (High of interest rates) Expectations (that prices will decrease) Tastes and attitudes (people want to consume more) The average age of durables (increases)

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

ChapterA: Working With Diagrams

Section: Chapter Questions

Problem 1QP

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Question

What would be the impact of changing the determinant variables given in the first column (below) on consumption?

Determinant	Consumption
Income (decrease) (Increase)
Assets held (increase in)
Taxation ( increase ) ( Decrease)
Cost of credit (High of interest rates)
Expectations (that prices will decrease)
Tastes and attitudes (people want to consume more)
The average age of durables (increases)

Rules by which an authority (usually a government) imposes a financial obligation on individuals or organizations within its domain. Property or transactions can be taxed. While taxes are primarily intended to fund the operation of a government, many tax laws are created to encourage or discourage certain behaviors by citizens or companies.

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