Economics question!!?
- Thread starter Joe Jack
- Start date
1. higher C confidence -> increase consumption. which will lead to increase AD, economic growth. this results in producer increasing production since there is higher demand. more factor of productions used, resulting in shortage. using price mechanism, it will lead to the upward pressure on price, thus inflation occurs.
2. when there is higher consumer confidence, it will lead to a fall in savings, assuming there is a lower opportunity cost to spend than to save. the fall in money supply in banks-> higher interest rates.
hope that helps.
2. when there is higher consumer confidence, it will lead to a fall in savings, assuming there is a lower opportunity cost to spend than to save. the fall in money supply in banks-> higher interest rates.
hope that helps.
1. higher C confidence -> increase consumption. which will lead to increase AD, economic growth. this results in producer increasing production since there is higher demand. more factor of productions used, resulting in shortage. using price mechanism, it will lead to the upward pressure on price, thus inflation occurs.
2. when there is higher consumer confidence, it will lead to a fall in savings, assuming there is a lower opportunity cost to spend than to save. the fall in money supply in banks-> higher interest rates.
hope that helps.
2. when there is higher consumer confidence, it will lead to a fall in savings, assuming there is a lower opportunity cost to spend than to save. the fall in money supply in banks-> higher interest rates.
hope that helps.
1. higher C confidence -> increase consumption. which will lead to increase AD, economic growth. this results in producer increasing production since there is higher demand. more factor of productions used, resulting in shortage. using price mechanism, it will lead to the upward pressure on price, thus inflation occurs.
2. when there is higher consumer confidence, it will lead to a fall in savings, assuming there is a lower opportunity cost to spend than to save. the fall in money supply in banks-> higher interest rates.
hope that helps.
2. when there is higher consumer confidence, it will lead to a fall in savings, assuming there is a lower opportunity cost to spend than to save. the fall in money supply in banks-> higher interest rates.
hope that helps.