ECO 561 Influence of Economics on Household Decision Making.edited 1 .docx ECO / 561 In

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ECO 561 Influence of Economics on Household Decision Making.edited 1 .docx ECO / 561 Influence of Economics on Household Decision Making ECO / 561 Impact of Economics on Household Decision Making... Introduction The understanding of general economics can have a profound effect on how an individual rationalizes big purchases such as a car, appliances, home repairs, home purchase, computer equipment, college tuition, or another "big-ticket" item, which are often purchased using loans/financing. In this analysis, I am reflecting on my decision-making process that led me to choose the purchase of my vehicle, a Chrysler 200. I will dive deeper into my decision-making process and uncover the latest ten-year trends in Gross Domestic Product (GDP) and trends in Personal Consumption Expenditures (PCE). I will also retrieve and analyze data on the Effective Federal Funds Rate and the Consumer Price Index for the same period. Finally, I will pivot my analysis to discuss the influences the Federal Government had on my car purchase. Latest 10 Year Trends Trends in GDP Retrieving the data from on the Real Gross Domestic Product over the last 30 years demonstrated a consistent increase year over year since 1987. There was a two-year period where the was a decrease in the GDP. In the year 2008, the GDP came in -0.3% than the year prior, with 2009 following with an even worse year at a -2.8% decrease in GDP. The goings-on of the times we know now as the housing crisis, and the banking scandals that rocked the nation clearly showed up in the U.S.'s real GDP. T. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. .. . . . . . . . . . . . . . . . . . .. . . . . [Show More]

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