Which one of the following is not a determinant of consumption spending? O A. Th

Question

Which one of the following is not a determinant of consumption spending? O A. The growth rate in the United States relative to the growth rates in other countries O B. Current disposable income ° C. The interest rate. O D. Household wealth The most important determinant of consumption spending is O A. household wealth B. current personal disposable income O C. expected future income. O D. the interest rate A rise in stock prices and housing prices OA. increases household wealth which in turn increases consumption and leads to an upward movement along the consumption function. O B. does noh affect consumption because they do not have any direct impact on disposable income O C. reduces consumption due to increase in prices and causes the consumption function to shift downward D. increases household wealth which in turn increases consumption and leads to an upward shift of the consumption function

Explanation / Answer

Answer:

D.
The growth rate in the United States relative to the growth rates in other countries. all others affect consumption spending levels.

A.
current personal disposable income. Its directly and most closely related to consumption spending.

C.
increases household wealth which in turn increases consumption and leads to an upward shift of the consumption function.

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