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Unformatted text preview: Federal Reserve chose to lower interest rate to save the economy. Clothing price decline was caused by weak consumption. Clothing is not necessary good, so people will chose to save those spending when their income decline. Also, people will spend more in clothing if their income increases. So the clothing price will increase when the economy is going strong. I think the gasoline price decline in the summer is because of the supply and demand. According to the article, the crude oil prices are down nearly 20 percent since April. That gives energy companies a room to reduce the gasoline price for the consumers. In addition, the relative weak demand is another reason. Since the crazy gas price before, people now know how to save gas. Therefore, the gas price may drop this summer....
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- Spring '11