Explain how the stock of consumer durables in the hands of consumers and credit availability each affect the level of consumption?

The stock of consumer durables in the hands of consumers, such as cars and appliances, has a direct impact on consumption. If consumers already have a significant amount of durable goods, they may not need to purchase additional ones, which would lead to a decrease in consumption. On the other hand, if consumers lack necessary durable goods, such as a car for transportation, they may increase their consumption to acquire these items. Credit availability also has an impact on consumption. If credit is easily available, consumers may be more willing to make purchases, even if they do not have the financial means to pay for them outright. This can lead to an increase in consumption. However, if credit is not easily available or if interest rates are high, consumers may be more hesitant to make large purchases, which could lead to a decrease in consumption. Overall, the stock of consumer durables and credit availability are both important factors in determining the level of consumption. A healthy balance between these two factors is necessary to ensure the economy continues to grow and consumers are able to make necessary purchases without taking on excessive debt.