The most important factor that influences total spending is
A) the interest rate
B) real wealth
C) expectations regarding future income
D) the income tax rate
E) real disposable income

Question

Quizplus · Accepted Answer

Real disposable income, or the amount of income consumers have after taxes and inflation, directly affects their ability to spend. As real disposable income increases, so does total spending. The other options may also have an impact on spending, but they are not as directly tied to consumers' ability and willingness to spend.

The Most Important Factor That Influences Total Spending Is