Q1) 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)

Q1) 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)

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter9: Aggregate Expenditures

Section: Chapter Questions

Problem 7E

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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)