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:

Influence

The capacity to have an effect on the character, development, or behavior of someone or something.

Sigmund Freud

An Austrian neurologist known for founding psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Psychoanalytic School

A set of psychological and therapeutic theories and methods, which originated with Sigmund Freud, emphasizing unconscious motivations and conflicts as driving human behavior.

Scientific Method

A systematic process of inquiry involving observation, hypothesis formation, experimentation, and conclusion to generate empirical knowledge.