Which of the Following Is Not a Primary Determinant of Consumption

question 94

Multiple Choice

Which of the following is not a primary determinant of consumption spending?

• A) Interest rates on savings
• B) Real income
• C) Wealth
• D) Rate of return on capital

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Definitions:

Context

The circumstances or setting that surrounds and gives meaning to an event, statement, or idea.

Reference Point

A baseline value or condition used for comparison in decision-making processes.

Risk Aversion

A descriptor for individuals or entities that prefer to minimize exposure to risk and uncertainty, typically opting for safer, more secure investments or choices.

Reference Point

A baseline or standard from which changes are measured, often used in decision-making and behavioral economics.