I am a PHD student and found this question on another part of this website. It is not my homework, but it is rather vague. I would be more interested in peoples' explanations for their answers. Thanks.
2006-12-20 21:49:13 · 1 answers · asked by Anonymous in Social Science ➔ Economics
At this time of our current society the largest determinant in spending is the housing market;for example: Right now,many people in the larger,more productive cities of our country know that their home is worth 1Million + dollars...most people did not pay anywhere near 1mil for their home so they now can reap a huge home equity line of credit which in turn will be spent buying high dollar items...This housing market also directly relates to the interest rates that are published ny the federal reserve..so, if the interest rates are low, say 1 to 5 % then more people are going to purchase homes and then in turn will spend more money not just because of equity but because homes need to be furnished etc...This is fairly common knowledge that I have seen published in books and articles in many magazines...The reverse is also true;if the value of homes were to take a hue hit, say 40 to 60% our country would then go into a recession..this is why the housing market will never return to normal pricing range but will stay severely over inflated.
2006-12-20 22:44:57 · answer #1 · answered by srhlun1 3 · 0⤊ 0⤋
Disposable income!
Logic:
1- The more money people have, the more they are going to spend.
2- Compare recession years with current consumer spending, you can only conclude that no matter how much marketing retailers conduct, their sales are directly influenced by the amount of money out there.
3- Disposable income also directly affects important consumer measures such as consumer confidence index, which in return affect the purchasing patterns.
2006-12-20 22:03:00 · answer #2 · answered by fozio 6 · 0⤊ 0⤋
It slows down when we do not feel good about the president and his directions of taking our country to wars etc etc an then we do not buy other wise it is the opposite with all the phd"s and brain power of the mensa minds we the people ever so simple control the spending,
2006-12-21 00:47:15 · answer #3 · answered by Gypsy Gal 6 · 0⤊ 0⤋
consumer confidence - derived from several sources (political, economic, etc.)
Shortly after 9/11 we saw numerous corporate scandals that (I believe) had an additional impact on spending.
2006-12-21 01:04:03 · answer #4 · answered by ? 2 · 0⤊ 0⤋
I would think Sales. When you find a really good bargain you want to spend more.
2006-12-20 21:50:48 · answer #5 · answered by lithdailums7@sbcglobal.net 2 · 0⤊ 0⤋
Disposable income.
2006-12-20 22:51:38 · answer #6 · answered by Ithea Nzau 3 · 0⤊ 0⤋
home consumables.
2006-12-20 21:58:45 · answer #7 · answered by ? 6 · 0⤊ 0⤋
income
2006-12-20 21:58:13 · answer #8 · answered by Stay Puft Marshmallow Man 2 · 0⤊ 0⤋
constipation, when they are full of it they spend more.
2006-12-20 21:51:26 · answer #9 · answered by Anonymous · 0⤊ 0⤋