Go to the St. Louis Federal Reserve FRED database, and find data on Personal Consumption Expenditures (PCEC), Personal Consumption Expenditures: Durable Goods (PCDG), Personal Consumption Expenditures: Nondurable Goods (PCND), and Personal Consumption Expenditures: Services (PCESV).
a. Using the most recent data: What percentage of total household expenditures is devoted to the consumption of goods (both durable and nondurable goods)?
b. Given these data, which specific component of household expenditures would be most impacted by a reduction in overall household spending? Explain.