Question

what are the main factor that affect the level of consumer spending in an economy​

Answer 1

Answer:

Consumption function, in economics, the relationship between consumer spending and the various factors determining it. At the household or family level, these factors may include income, wealth, expectations about the level and riskiness of future income or wealth, interest rates, age, education, and family size.

Answer 2

Consumer spending generally follows the pattern of the business cycle. During economic downturns, consumer spending typically decreases as unemployment increases and personal income decreases. In contrast, during expansions, consumer spending increases as unemployment decreases and personal income increases.