According to the aggregate expenditures model, what is the main determinant of current consumption spending in an economy?
A) current disposable income
B) tax rates
C) interest rates
D) the money supply

Question

Quizplus · Accepted Answer

The main determinant of current consumption spending in the aggregate expenditures model is current disposable income. This model suggests that as people's income increases, they are likely to spend more, and as it decreases, they are likely to spend less.

According to the Aggregate Expenditures Model, What Is the Main