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Author Question: What are the five main determinants of consumption spending? Which of these is the most important? ... (Read 129 times)

leo leo

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on: Jun 29, 2018
What are the five main determinants of consumption spending? Which of these is the most important?
 
  What will be an ideal response?

Question 2

The output of Mexican citizens who work in Texas would be included in the
 
  A) net national product of the United States. B) gross national product of the United States.
  C) gross national product of Mexico. D) gross domestic product of Mexico.


Kaytorgator

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Reply #1 on: Jun 29, 2018
Answer to Question 1

The five main determinants of consumption spending are current disposable income, household wealth, expected future income, the price level, and the interest rate. The most important determinant is current disposable income.

Answer to Question 2

C


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