3 How will each of the following factors influence the consumption schedule? (a) The expectation that consumer

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3 How will each of the following factors influence the consumption schedule?

(a) The expectation that consumer prices will rise more rapidly in the future

(b) Pessimism about future employment conditions

(c) A reduction in income taxes

(d) An increase in the interest rate

(e) A decline in stock prices

(f) A redistribution of income from older workers (aged 45 and over) to the young (under 35) (g) A redistribution of income from the wealthy to the poor

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Essentials Of Economics

ISBN: 396414

2nd Edition

Authors: James D Gwartney; Richard Stroup; J R Clark

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