How does federal debt effect the revenue for Campbell’s
soup?
- In short run: in short run, uptick in the
federal debt implies more demand in an economy. Rise in demand
leads to the healthy sale of Campbell soup. Thus, overall revenue
and profits of Campbell’s soup rise.
- Long run: In long run, government may go for
higher taxes to payoff past debts. Thus, it shall reduce demand for
product of Campbell’s soup thereby causing fall in the
revenue.
How does household net worth effect the revenue for Campbell’s
soup?
- Higher networth means consumers have strong economic condition.
Thus, consumers are likely to consume more. Thus revenue of
Campbell ,s soup would rise.