Examlex
Explain what frost line is. Is it location specific?
Permanent Income Hypothesis
A theory suggesting that people's consumption choices are based on their long-term income expectations rather than their current income.
Induced Consumption
Consumer spending that increases as disposable income rises, and decreases as disposable income falls, unrelated to the level of interest rates.
Wealth Effect
The change in spending that accompanies a change in perceived wealth, typically when home values or investment portfolios increase.
Induced Consumption
Describes consumer spending that increases when income increases and decreases when income decreases, directly related to the level of disposable income.
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