egin to live off these assets when they retire. By the end of the person’s life, they will have used up their assets; this includes any they wish to leave to their children. Consumption thus remains constant over the period of the person’s lifetime” (Consumption 1).
We can see that there are many macro- and micro-economic factors which impact consumption in consumers. First, there is a directly proportional relationship between the level of income and the level of consumption. As income rises so will consumption. If an individual has investment in stocks, as the stocks increase in value so does the individual’s wealth. As wealth increases the individual will consume more, but little of the extra income will be saved. If rising prices are seen as temporary, individuals will generally not rise consu
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