Factors affecting Consumption

A) Income after the deduction of gov taxes b) Family circumstances – the larger the family, the more will be consumed c) Past income – spending habits d) Future prospects – ppl can often borrow and spend if they expect promotion at a higher pay e) Savings / assets – no savings, only debts ppl will be unable to consume so much, as they will be forced to devote part of their income to debt payments f) Credit facilities g) Level of state services