I. 🍃Introduction
- Brief overview of the topic

II. Positive effects of increased household spending
- Higher total demand may increase output
- Firms may invest more leading to higher employment
- Higher investment will increase total demand and productive capacity

III. Potential limitations of increased household spending
- Economy may already be at full employment
- Higher total demand may increase prices/rate of inflation rather than output
- Households and firms may spend on imports
- Households and firms may borrow to repay past debts
- Variable interest rate increase could then affect the level of future consumption and investment

IV. 👉Conclusion
- Summary of the positive and negative effects of increased household spending
- Importance of considering potential limitations when analyzing the impact of increased household spending on the economy.