Unformatted text preview: up S goes down and vice-versa. b.Expectations: Expectations about prices, incomes shift C and S. c.Household Debt: If household debt at each level of DI is increased C shifts up. d.Taxation: Taxation reduces both C and S. Because taxes are take out a part of our incomes. So, when income is reduced so are C and S. Cases of a, b, and c consumption and savings schedule more or shift in opposite direction. In case of d, both schedules shift down in the same direction....
View Full Document
- Spring '11
- Stock and flow, Household income in the United States, Capital accumulation, non-income determinants, 10.04.2009-PART2 CHAPTER