Components Flashcards
1
Q
Consumer expenditure
A
- Disposable income
- Wealth
- Consumer confidence
- Rate of interest
- Age structure of population
- Inflation
2
Q
Saving
A
- Rate of interest
- Consumer confidence
- Inflation
3
Q
Investment
A
- Changes in disposable income
- Expectations
- Capacity utilisation
- Rate of interest
- Corporation tax
- Advances in technology
4
Q
Government spending
A
- Desire to please the electorate
- War
- Level of economic activity
- Extent of market failure
5
Q
Net exports
A
- Real disposable incomes abroad and at home
- Exchange rate
- Restrictions on free trade
6
Q
Determinants of exchange rate
A
- International competitiveness of product
- Incomes abroad
- Domestic interest rates; rise, rises d for £
- FDI
- Speculation
