According to Keynes, what is the most important determinant of households' spending on goods and services?
A) the price level
B) the interest rate
C) autonomous consumption
D) disposable income

Question

Quizplus · Accepted Answer

According to Keynes, the most important determinant of households' spending on goods and services is their disposable income. As disposable income increases, households are more likely to spend money on goods and services, which in turn stimulates economic activity. Therefore, the correct answer is D - disposable income.

According to Keynes, What Is the Most Important Determinant of Households