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The Consumption Function - Research Paper Example

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In contrary, the vital components that explain the consumption expenditure are majorly wealth, disposable income , expected in…
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The Consumption Function
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The Consumption Function

Download file to see previous pages... High interest rates inhibit expenditure as exhibited from table above. The data on proxy for disposable income indicates that increase on concurrently increases the amount of consumer expenditure as exhibited in Bhutan which has a high of 125 US million real GDP (proxy for disposable income) dollars and corresponding consumption expenditure 612,218,864.
With reference to the provided data in the scatter graph it is highly fundamental to show all the determinants have influence on the expenditure. Increase in real GDP causes increase in consumer expenditure while increase in the interest rates reduces the expenditure. The data fits the theory as ...Download file to see next pagesRead More
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