Consider the consumption function in our macro model.The key factors that influence desired consumption are assumed to be
A)expectations about the future.
B)wealth.
C)interest rates.
D)disposable income.
E)all of the above

Question

Quizplus · Accepted Answer

All of the factors listed (expectations about the future, wealth, interest rates, and disposable income) are included in the consumption function as key determinants of desired consumption. Therefore, E is the best choice.

Consider the Consumption Function in Our Macro Model