Briefly summarize the factors that influence your personal level of consumption spending. Which factor would you say is the single most important determinant of your consumption spending? Why?

What will be an ideal response?

Answers will vary. Students should include a list of factors, such as family disposable income (after-tax income), credit conditions, the level of debt outstanding, the amount of financial assets, and expectations about the economy. Students should also identify which factor is most important to them and why. For example, students might choose their level of debt because their loan payments are very high or their disposable income because they work only part time.