HELP MEDAL AND FAN - Explain the relationship between consumer expectations and economic performance. - Explain how a person can be employed and still be living under the poverty threshold.
do your own homework!
It's up to you if u think this answers ur first question. 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.
@Matt6288 i asked for help not for the answers. Completely different! I answered the second one on my own, i just didn't understand the first one. But thanks
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