Chapter 8: Measures of Economic Activity

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Interest Rates • The cost <strong>of</strong> money • Low interest rates encourage spending (housing, cars, appliances) and therefore will increase consumption • High interest rates discourage consumer borrowing and depresses spending (less consumption)
Consumer Indebtness • A strong factor affecting consumers willingness to spend • Heavy debt loads prevent further borrowing
Page 1 and 2: An Introduction to Macroeconomics D
Page 3 and 4: Recovery The Business Cycle The Bus
Page 5 and 6: Economic Prosperity: The Demand Sid
Page 7 and 8: A: What Determines Consumption (C)?
Page 9: Consumer Confidence • The degree
Page 13 and 14: How much do Canadians save? • Per
Page 15 and 16: Investment Spending By Businesses (
Page 17 and 18: What Determines the Level of Busine
Page 19 and 20: Interest Rates • When interest ra
Page 21 and 22: GOVERNMENT SPENDING ON GOODS & SERV
Page 23: Questions & Homework

Chapter 8: Measures of Economic Activity

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