Question 6: Explain how each of the following affects consumption demand. (a) The expectation is that the economy is heading into a recession next year. (b) Stock prices rise sharply. (c) The interest...

Question 6:
Explain how each of the following affects consumption demand.
(a) The expectation is that the economy is heading into a recession next year.
(b) Stock prices rise sharply.
(c) The interest rate on consumer loans falls sharply.
(d) Income taxes increase.