In national output determination theory,personal consumption expenditures depend primarily on
A) the amount of net investment.
B) the expected rate of return.
C) disposable income.
D) the difference between the average and marginal propensities to consume.
E) the aggregate demand curve.

Question

Quizplus · Accepted Answer

Personal consumption expenditures depend primarily on disposable income, which is the income that households have after paying taxes. As disposable income increases, households have more money to spend on goods and services, leading to an increase in personal consumption expenditures. Other factors, such as interest rates and consumer confidence, can also affect personal consumption expenditures, but disposable income is the primary determinant.

In National Output Determination Theory,personal Consumption Expenditures Depend Primarily on