The Five Most Important Variables That Determine the Level of Consumption

question 46

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, chequing 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.
• E)disposable income, taxation, expected interest rates, price level, and corporate retained earnings.