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Home > Theory of Income Determination

Theory of Income Determination

1. What determines the level of consumption in an economy?

2. Explain the factors that are likely to cause a slowdown in the growth of consumer spending.

3. Explain the conditions for equilibrium in the circular flow of national income.

4. Explain the key determinants of household savings.

5. Discuss whether high household savings rates are desirable for any economy.

6. Explain the major factors that determine the level of foreign direct investments in your country.

7. Discuss how a reduction in personal and corporate tax rates affect the equilibrium level of national income in Singapore.

8. Evaluate whether a slowdown in the growth of consumer spending should be a cause for concern for the economic policy makers in Singapore.

9. Explain what is meant by the equilibrium level of national income.

10. Explain the ways in which the government might influence the level of private investments in a country.