1. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 15 Instability in the Private Economy: Consumption Behavior

2. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 15-2 Figure 15-1 Real Consumer Expenditure and its Three Components, 1960–2004

3. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 15-3 Figure 15-2 The Relation Between Disposable Income (Y D ), Consumption Spending (C), and the Ratio of Saving to Income (S/Y D ) (1 of 3)

4. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 15-4 Figure 15-2 The Relation Between Disposable Income (Y D ), Consumption Spending (C), and the Ratio of Saving to Income (S/Y D ) (2 of 3)

5. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 15-5 Figure 15-2 The Relation Between Disposable Income (Y D ), Consumption Spending (C), and the Ratio of Saving to Income (S/Y D ) (3 of 3)

6. Figure 15-2 The Relation Between Disposable Income (Y D ), Consumption Spending (C), and the Ratio of Saving to Income (S/Y D )

7. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 15-7 Figure 15-3 Ratio of Personal Saving to Disposable Personal Income (S/Y D ), Averages over Business Cycles, 1898–2001

8. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 15-8 Figure 15-4 The Permanent-Income Hypothesis of Consumption and Saving

9. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 15-9 Figure 15-5 The Behavior of Consumption, Saving, and Assets under the Life-Cycle Hypothesis

10. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 15-10 Figure 15-6 Consumption, Saving, and Assets under the Life-Cycle Hypothesis When There Is an Initial Stock of Assets

11. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 15-11 International Perspective Why Do Some Countries Save So Much?

12. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 15-12 Figure 15-7 The Household Saving Rate and the Ratio of Household Net Worth to Personal Disposable Income, 1970–2004

13. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 15-13 Figure 15-8 Components of Household Assets as a Ratio to Personal Disposable Income, 1970–2004, in Percent

14. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 15-14 Figure 15-9 Household Saving in the NIPA and Flow of Funds Accounts, 1960–2004

15. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 15-15 Figure 15-10 Flow of Funds Accounts and Gains-Inclusive Saving Rates, 1976–2004