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.

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Definitions:

Parietal Lobe

A region of the cerebral cortex involved in processing sensory information such as touch, pressure, and pain.

Postcentral Gyrus

An area of the cerebral cortex involved in processing touch and proprioception information.

Frontal Lobe

Part of the brain located at the front of each cerebral hemisphere and involved in movements, decision making, problem solving, and planning.

Precentral Gyrus

A region of the frontal lobe in the brain responsible for voluntary muscle movements, containing the primary motor cortex.