Statement: "All this frugality is producing a consumer-generated recession. What is needed is some policy action to stimulate consumer spending to move the economy out of its current lassitude."

1. What is a consumer-generated recession?

2. What type of policy action could stimulate consumption?

3. How would stimulating consumer spending move the economy out of recession?

4. How would you forecast what consumers are likely to do?]

5. How does the savings rate affect the current economy? the future economy?