Since a rise in interest rates means a fall in the values of financial assets, this further depresses total real expenditure via the wealth effect.

The fourth Labour government did not overtly change the main welfare system, however, real expenditure per benefit receipent fell.

If so, real expenditure on physical capital and durable consumer goods can be affected.

The ambitious goal of reducing real total public expenditure in absolute terms was never achieved.

Alternatively, Engel curves can also describe how real expenditure varies with household income.

She also said she expected real personal expenditures to increase 1.1 percent during the current economic slowdown.

Particularly because of budget pressures, he will be hard-pressed even to build inflation into the Pentagon budget, much less to increase real expenditures.

Savings were made in some budget lines by working out the budget on the basis of real expenditure rather than index-linked calculations.

And prudent because a realistic analysis of the real expenditure reveals an appreciable margin for readjustment.

"That's what I think gave shape to the real high-end expenditures during the second half of the 90's," he said.