Which of the following is a non-income factor affecting consumption?
A)Wealth
B)Real interest rates
C)Borrowing
D)All the answer choices are correct.

Question

Quizplus · Accepted Answer

All the listed factors (wealth, real interest rates, and borrowing) are non-income factors that can influence consumption. Wealth affects consumption through the wealth effect, real interest rates influence the cost of borrowing and saving, and borrowing capacity affects the ability to spend beyond current income.

Which of the Following Is a Non-Income Factor Affecting Consumption