(c - t) is Consumption Expenditure less Taxes. The inflation rate is now at 3% to 4% - still not too bad to ensure prices of a basket of consumer items are affordable save for oil and gas product that is haywired at the moment. Taxes dampen disposable income and thus, reduce propensity to consume. However, if Taxes are reinjected back in the equation via G, which I will explain later, will have positive impact to the economy. Another indicator to gauge whether we have enough stamina to ensure sustainable consumption expenditure is the unemployment rate. Currently it is low at 3% implying that there would be plenty of disposable income across the population.