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POSTPONABLE DURABLES

8 May, 2015 - 11:12

Business cycles are significantly affected by changes in sales of items which last several years because their purchase can be postponed through additional maintenance and repair. Such postponable items are essentially the durable goods and new capital.

The purchase of a car is most often delayed when insecurity about employment exists. If difficulties are encountered, monthly payments may be missed and the car could be repossessed.