According to a new study to be published in the Journal of Consumer Research, shoppers are less likely to spend their dough if they are carrying cash in large denominations. This so-called “denomination affect” can be a powerful predictor of consumer spending habits. People tend to overvalue bigger bills. Consumers fear that once they break that large bill, they won´t be able to stop spending the rest. The US Government is desperate for consumers to start spending again. So maybe the Obama Administration is approaching the economic stimulus the wrong way. Forget about tax cuts and grants to state governments. Just give the people a bunch of $1 bills.
Source: http://www.time.com/time/business/article/0,8599,1887485,00.html
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This is very true since that happens to me as well. It is hard to let a hundred bill go. But as the old saying also goes: "cash in the pocket is like a windstorm". Now, giving people a bunch of bills would certainly pump up consumers' spending. Obama could do that as bonuses in the same way he has done to big corporations.
ResponderExcluirThis study is very interesting, maybe this proof makes the stores stimulate so much the credit card consumption.
ResponderExcluirit's very funny this analysis, but in real life it is happenning all the time. if you have money you won't save it unless you have to pay the bills.
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