Consumer spending Flashcards
1
Q
what is meant by progressive tax
A
the more you earn the more you contribute via tax, lowers the gap between fortunate and less fortunate
2
Q
what is meant by consumer confidence
A
measures changes in attitudes, including expectations and households own financial position and their views on making major purchases(animal spirits)
3
Q
what are key influences of consumer confidence
A
-economic growth
-household debt
-house prices
4
Q
what is the definition of marginal propensity to consume(MPC)
A
the change in consumer spending arising from a change in disposable income
