Which of the following is NOT a determinant of household saving?
A) the nominal interest rate
B) disposable income
C) the household's wealth
D) expected future income

Question

Quizplus · Accepted Answer

The nominal interest rate is not a direct determinant of household saving because it does not adjust for inflation. Real interest rates, which are adjusted for inflation, have a more direct impact on the incentive for households to save or spend. Disposable income, household wealth, and expected future income are all direct determinants of household saving, as they affect the ability and propensity of households to save.

Which of the Following Is NOT a Determinant of Household