MTH8

docx

School

Eastern Gateway Community College *

*We aren’t endorsed by this school

Course

102

Subject

Economics

Date

Nov 24, 2024

Type

docx

Pages

Uploaded by anaelibaldor

Hello everyone! As a consumer, economic forces have a significant impact on my purchasing decisions. Among these forces, employment plays a crucial role as it directly affects my financial capacity to make purchases. While I generally feel secure in my job and confident about my financial situation, there are times when I hesitate to make major purchases due to concerns about unforeseen circumstances. The fear of unexpected illnesses or a period of unemployment can lead to a cautious approach, questioning whether I would be able to afford my existing obligations without falling into debt. As I grow older, I have become more mindful of pricing and interest rates, leading me to carefully evaluate my needs before making any impulsive buying decisions. This shift in mindset has made me more cautious and calculated in my purchasing habits. Interest rates play a significant role in shaping my major purchasing decisions. Thankfully, when my spouse and I bought our home years ago, we were fortunate to secure a mortgage at an extremely low- interest rate. Given the current market conditions, I realize that purchasing a home now would not be as financially feasible. While renting may seem like an alternative, the rising cost of living makes it less appealing. It has been challenging to explain the concept of interest rates to our young teenage daughter, especially when she is eager to have a brand-new car. However, the pandemic has shifted my perspective on financial matters. Witnessing the hardships faced by friends and family during this time has made me more cautious. Nowadays, I only make major purchases if I have the cash on hand and, when necessary, utilize credit cards with zero percent interest rates and no hidden fees. This approach helps me maintain financial stability and avoid unnecessary debt. Furthermore, consumer confidence plays a crucial role in shaping my purchasing decisions. When consumer confidence is at a high level, reflecting a positive outlook on the economy, I tend to feel more optimistic about the future. That optimism translates into a greater willingness to make purchases, both essential and discretionary. However, when consumer confidence is low, I tend to adopt a more cautious approach. During such times, I become more aware of my spending habits, reduce expenses and increase my savings as a precautionary measure. Overall, economic forces such as employment, income, prices, interest rates, and consumer confidence all have an extreme impact on my purchasing decisions as a consumer. These factors influence my perception of financial security, affordability of goods and services, borrowing decisions, and overall optimism about the economy. Understanding these economic forces helps me make informed choices that coincide with my own life and finances.

Discover more documents: Sign up today!

Unlock a world of knowledge! Explore tailored content for a richer learning experience. Here's what you'll get:

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Related Documents

Unit 2 Milestone-7.pdf

3BB54A49-C35A-4E44-B452-9697C37EF8EE.jpeg

IMG_9571.jpeg

ttcyftxycf (79)-2.pdf

IMG_5121.jpeg

Screenshot 2023-09-06 144822.png

54.docx

msedge_1rGM186trb.png

073777879_Effects_of_the_Federal_Reserve_s_Monetary_Policy_on_the_Financial_Institutions_and_Markets

soup.docx

Week 2 discussion-Facts about Amazon dilemma.doc

Essay On World Population.pdf

Recommended textbooks for you

Microeconomic Theory

Economics

ISBN:9781337517942

Author:NICHOLSON

Publisher:Cengage

Managerial Economics: A Problem Solving Approach

Economics

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Cengage Learning

Economics (MindTap Course List)

Economics

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Cengage Learning

Microeconomics

Economics

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Cengage Learning

Microeconomics: Private and Public Choice (MindTa...

Economics

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:Cengage Learning

Macroeconomics

Economics

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Cengage Learning

SEE MORE TEXTBOOKS

Recommended textbooks for you

Microeconomic Theory
Economics
ISBN:9781337517942
Author:NICHOLSON
Publisher:Cengage
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Microeconomics
Economics
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Macroeconomics
Economics
ISBN:9781337617390
Author:Roger A. Arnold
Publisher:Cengage Learning