Fundamental change in our economy from consumer savings
Not what you're looking for?
Do you think this will have an impact on future consumer spending. With the U.S. consumer representing approximately 70% of our GNP - will this fundamentally change our economy if the consumer saves more in the future?
Purchase this Solution
Solution Summary
In a 275 word solution, the response walks through the various steps for what it takes to get from a bad economy to a decent economy by focusing on changes at the consumer level from overspending to saving.
Solution Preview
You are absolutely correct that there will be a fundamental change in our economy. Some of it is not so good, but much of the change will be very good in the long run.
The sequence could go like this:
Consumers spend less because they are saving.
GDP will decrease, although it may be partly mitigated by international sales.
Savings amounts will increase which will be invested back into the economy by banks ...
Purchase this Solution
Free BrainMass Quizzes
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Operations Management
This quiz tests a student's knowledge about Operations Management
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.