Chapter 17: Households Flashcards
1
Q
Disposable income
A
Income after income tax has been deducted and state benefits received
2
Q
Wealth
A
A stock of assets including money held in bank accounts, shares in companies, government bonds, cars and property
3
Q
Rate of interest
A
A charge for borrowing money and a payment for lending money
4
Q
Average propensity to consume (APC)
A
The proportion of household disposable income which is spent
5
Q
Consumption
A
Expenditure by households on consumer goods and income
6
Q
Savings ratio
A
The proportion of household disposable income that is saved
7
Q
Average propensity to save (APS)
A
As savings ratio, it is the proportion of household disposable income that is saved
8
Q
Mortgage
A
A loan to help buy a house
