consumption plus savings plus taxes. Y- T is disposable income or what is left over after you pay taxes. Consumers have a choice between consuming the income and saving the income. Consumers typically choose consumption. Why? Well, there are many reasons but a few are that consumption is a lot more fun, peer pressure to consume, a desire to “grow up,” a way to compensate for things lacking in your life and other ideas. Basically, the current society is made up to promote consuming. Thus, saving or investing…
Words 6990 - Pages 28