Choose the appropriate term for each statement. Word Choices:

(A) income
(B) interest rate
(C) expectations
(D) wealth
(E) household debt
(F) taxes

1. Keynesian economists think that is the key determinant of consumption and spending.
2. Classical economists think that the higher the , the more people will save, which means that they will consume less.
3. A person's about how much income he/she will earn in the future as well as future prices could shape how much he/she spends and saves today.
4. The more the person has, the less current consumption he/she undertakes.
5. A person's total income can be divided into three components: consumption, savings, and .
6. Savings, which is total income minus consumption and taxes, can be used to create more .

1.  Keynesian economists think that _Income is the key determinant of consumption and spending.

2. Classical economists think that the higher the _interest rates, the more people will save, which means that they will consume less.

3. A person's _expectations about how much income he/she will earn in the future as well as future prices could shape how much he/she spends and saves today.

4.  The more _wealth the person has, the less current consumption he/she undertakes.

5. A person's total income can be divided into three components: consumption, savings, and household debt.

6. Savings, which is total income minus consumption and taxes, can be used to create more __taxes.

answer; blank (1) hrm specialists,blank(2); line managers;

answer; no individual buyer or seller has any significant impact on the market price;