Year 11 Exam  >  Year 11 Notes  >  Economics for GCSE/IGCSE  >  Spending, Saving & Borrowing

Spending, Saving & Borrowing | Economics for GCSE/IGCSE - Year 11 PDF Download

The Influences on Spending

  • Expenditure within an economy is commonly referred to as consumption. The amount households spend is significantly impacted by their income, prevailing interest rates, and their confidence in the economic outlook.

The Influences On Household Spending & Consumption 

Spending, Saving & Borrowing | Economics for GCSE/IGCSE - Year 11

The Influences on Saving

  • Disposable income can be saved or spent on goods/services (consumption)

The Influences on Household Saving

Spending, Saving & Borrowing | Economics for GCSE/IGCSE - Year 11

The Influences on Borrowing

  • Households borrow money from friends, relatives, money lenders & commercial banks
  • Commercial banks usually require security to extend a loan
    • The need for security can hinder low-income households from accessing bank loans at competitive rates

The Influences On Household Borrowing

Spending, Saving & Borrowing | Economics for GCSE/IGCSE - Year 11

The document Spending, Saving & Borrowing | Economics for GCSE/IGCSE - Year 11 is a part of the Year 11 Course Economics for GCSE/IGCSE.
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