02 Jun Question 1. Would culture affect one’s propensit
Question
1. Would culture affect one’s propensity to save? Or, would geographic location affect one’s propensity to save?
2. Can you estimate your own consumption schedule? What would be important to know when doing so? If your income went up by 10%, would your consumption also increase by 10%?
3. When discussing borrowing, it is important to point out that borrowed money may increase spending today but will have to be paid back sometime in the future. At that time, it will decrease spending. What does that tell us about our current economic state? Not counting our national debt, Americans are estimated to have borrowed $11.4 Trillion. Based on what we know about spending and saving, what can we predict about the future of our economy?
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