Consumption and Saving Discussion

Description

1. Overview

In this module discussion, we will be considering consumption and saving.

Instructions

In a response, address the following:

Discuss the relationship between saving and consumption.

In your discussion, distinguish between saving and savings.

Consumer spending is directly affected by expectation of future income.
What events might change consumer confidence?

Discuss and provide examples of events that may change consumer confidence and therefore impact consumer spending.

Do your best to avoid posting duplicated information if possible.

Where appropriate, cite examples from your text or other readings.

2. Overview

The government can pursue fiscal policy actions by changing government expenditures or taxes.
Instructions

In your initial post, answer the two questions.

What are the possible effects from making these types of changes to either government spending or taxes?

Give an example of a discretionary fiscal policy action you have seen taken in the past and why you felt that action was taken.

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