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The American government is determined to combat this, and the most notable way it will do this is through an increase in taxes, which will mean consumers have less disposable income, and will look to meet necessities first rather than spend on new inventions. Furthermore, a higher interest rate means it will be more expensive for Dell to fund new projects through loans. As well, it will be more expensive for consumers to pay off their mortgage payments, thus, they will have less to spend on luxuries (Chennai, 2006, 1). The increase in gas prices will increase the cost of distributions and shipping for all firms, and because consumers’ disposable income is down significantly already, these costs can’t be passed on...
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