The level of consumption tends to rise as credit availability _____ and the stock of durable goods in the hands of consumers is ______.

Question

Quizplus · Accepted Answer

The level of consumption tends to rise as credit availability rises because consumers have more access to funds to make purchases. When the stock of durable goods in the hands of consumers is low, there is a higher demand for new purchases, further increasing consumption.

The Level of Consumption Tends to Rise as Credit Availability