consumer demand

• What can cause an increase in imports?

  High levels of consumer demand
• What happens if real household spending grows more quickly than the supply side of the economy can deliver?

  The economy must import goods and services to meet demand
• What is the relationship between high incomes in a country and imports?

  High incomes lead to high imports
• How do high incomes affect the level of exports?

  High incomes have no effect on the level of exports
• What is the overall effect of high consumer demand on the economy's supply side?

  It leads to increased imports when supply cannot meet demand