The Five Most Important Variables That Determine the Level of Consumption

question 169

Multiple Choice

The five most important variables that determine the level of consumption are

• A)disposable income,wealth,expected future income,price level,and interest rate.
• B)wealth,savings account balances,checking account balances,stock portfolio balances,and bond portfolio balances.
• C)government purchases,interest rates,income,taxes,and transfers.
• D)government purchases,saving account balances,wealth,interest rates,portfolio balances.

---

Definitions:

Limbic System

A complex system of nerves and networks in the brain, involved in basic emotions such as fear and pleasure, and drives such as hunger and sex.

Hypothalamus

A region of the brain that regulates bodily functions including temperature, hunger, and thirst.

Thalamus

The brain's main relay station, channeling sensory and motor signals to and from the cerebral cortex.

Temporal Lobe

An area of the cerebral cortex that plays a role in analyzing sound information and forming memories.