Changes in which of the two factors below would most likely cause a change in consumer spending? The following list of factors, are related to the aggregate demand curve.
A) 1 and 3
B) 2 and 4
C) 5 and 10
D) 8 and 9

Question

Changes in which of the two factors below would most likely cause a change in consumer spending? The following list of factors, are related to the aggregate demand curve. 
A) 1 and 3 
B) 2 and 4 
C) 5 and 10 
D) 8 and 9

Quizplus · Accepted Answer

Consumer spending is most closely related to factors such as income and wealth (2) and consumer confidence (4), which are both included in option B. Factors such as government spending (1), interest rates (3), international trade (5), and technological progress (10) may also affect aggregate demand, but they are less likely to have a direct impact on consumer spending. Factors such as population growth (8) and natural resources (9) may have long-term effects on the economy, but they are not likely to have an immediate impact on consumer spending.

Changes in Which of the Two Factors Below Would Most