7.5k views
5 votes
Disposable income of americans decreases along with their savings rate. explain the impact on economic growth.

1 Answer

2 votes
Disposable income of americans decreases along with their savings rate. Explain the impact on economic growth. Economic growth would start to decrease because consumers are spending less money within the economy. If someone is not saving, they are typically encouraged not to spend money frivolously to make sure they have funds on hand. The more consumers spending decreases, business profits decrease as well resulting in less job opportunities for people or a decrease in pay.
User Bipin Bhandari
by
5.3k points