Your English writing platform
Discover LudwigExact(10)
ONE thing that's worth remembering as we discuss the recovery (something I often have to remind myself) is that American spending on consumption was primarily directed toward what one might call necessities.
Spending on consumption, investment and net exports all increase.
In 1969, American consumers were allocating half of all their spending on consumption to goods.
The lessons of the Great Depression and John Maynard Keynes seem to have been forgotten: when private-sector spending on consumption and investment falls, public-sector spending must be increased to maintain effective demand and prevent unemployment.
Concerns about Asian exports have also been rising for months, as the region's high savings rate means that it also has weak spending on consumption and remains heavily dependent on overseas demand.
The tsunami, by reducing risk premia and safe interest rates, has boosted the prices of nominal assets like bonds, and so boosted household spending on consumption out of wealth.
Similar(50)
Since saving is defined as household income not spent on consumption (i.e., Y - C ≡ S), one obtains (by substituting a + by for c) the saving schedules S = -a + (1 - b) Y, which in Figure 2 is shown to intersect the investment schedule at Y = $100 million.
Many researchers argue that the bulk is spent on consumption with little being used on productive investment.
Milton Friedman suggests that the total amount spent on consumption is on the average the same fraction of permanent income, regardless of the size of permanent income.
Most of the money is spent on consumption — food, clothing or a birthday bash — which leads some economists to discount its impact on development.
"It is a staggering fact that around 40% of what we spend on consumption of food and drink at home comes from price promotions," she said.
Write better and faster with AI suggestions while staying true to your unique style.
Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com