1. Economic Issues
... level of spending in the economy - that is, the level of aggregate demand. If households and business firms were generally pessimistic about the future economic outlook, housholds would tend to spend less on consumer goods and save more and business firms would be reluctant to invest in capital ... increse in injections causing an upturn. Influences on consumption Consumer expectations If consumers expect a higher rate of inflation, higher real incomes or future shortages of goods then they would tend to spend more and save less in the short term and vice versa. The level of Interest ......
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