Can someone explain the relationship between consumer expectations and economic performance? Could use some help.

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asked Nov 11, 2017 98.1k views

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Zetawars · Answer 1 · 2017-11-17T08:13:14+0000

if a consumer believes that the price of the good will be higher in the future he is more likely to purchase the good now. If the consumer expects that her income will be higher in the future the consumer may buy the good now. In other words positive expectations about future income may encourage present consumption.

Can someone explain the relationship between consumer expectations and economic performance? Could use some help.

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