1. In recent years, Consumption spending by households has accounted for about 70% of the total spending (aggregate demand) in the U.S. economy. Your author mentions five (5) determinants that might shift the Consumption Schedule of the economy. What are these 5 factors.
2. The Investment demand curve is a useful tool to summarize an important and complex relationship in the economy. What are the determinants that may cause this Investment demand curve for the U.S. economy to shift? Which one (1) of these determinants do YOU think is most important to the U.S. economy today (Fall, 2012)? WHY?