households Flashcards
1
Q
what is disposable income?
A
the amount of money a consumer can use after tax
2
Q
what is interest?
A
the cost of borrowing or the return on savings
3
Q
what are the determinants of spending borrowing and saving?
A
income, confidence level,age, houshold size, interest and inflation
4
Q
what is saving?
A
the money put away by a person for future are savings
5
Q
what is borrowing?
A
borrowing occurs when a consumer takes money from a third party with the agreement that he will pay the money back at a later date
