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A low spending rate can be attributed to many factors. One such factor is the expectations of price changes. If people expect the prices of goods to be cheaper in the future, their current consumption will drop. Another factor that can be attributed to a low spending rate is credit and interest rates. Many durable goods (defined as goods expected to last at least a year) are bought on credit, and if credit is not readily available or if interest rates are unattractive, then the purchase of expensive durables will drop, dropping the MPC. A third factor that can contribute to low spending rates is taxation...
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