4: Aggregate Expenditure Model Flashcards by Ava Tan

Q

Factors Affecting Consumption

A

Disposable Income
IR
Inflation Rate
Wealth and Debt
Expectations

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Q

Factors Affecting Investment

A

Profitability
IR
Government Policies
Expectations

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Q

Factors Affecting Government Spending

A

Political Stance
Shocks
Demographics
Healthcare Cost
Tax Revenue

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Q

Factors Affecting Saving

A

Real IR
Consumer Confidence
Existing Level of Debt or Wealth
Inflation

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