households

Question 1

saving

Answer 1

the delaying of consumption until sometime later when the consumer withdraws and spends their savings and any interest earned

Question 2

factors affecting savings

Answer 2

1. income
2. age
3. dependents [family structure]
4. interest rates
5. consumer confidence

Question 3

spending [consumption]

Answer 3

the buying of goods and services

Question 4

factors affecting spending

Answer 4

1. wealth
2. disposable income
3. consumer confidence

Question 5

borrowing

Answer 5

collecting of money from a person or financial institution with the intention of paying back with interest

Question 6

factors affecting borrowing

Answer 6

1. interest rate
2. consumer confidence
3. wealth

Question 7

expenditure patterns between income groups

Answer 7

1. wealthier people tend to borrow, spend and save more
2. poor people tend to spend higher propoertions of their disposable income [mostly on necessities] than the rich
3. poor people save less of their disposable income compared to the rich