Household spending:
A) is based primarily on unearned income.
B) tends to fluctuate widely as the economy moves through the business cycle.
C) is larger than the combined spending of all U.S. businesses, government units, and foreign buyers.
D) all of the above.

Question

Quizplus · Accepted Answer

Household spending is the largest component of aggregate demand in most economies, including the U.S., and is larger than the combined spending of businesses, government units, and foreign buyers. Choices A and B are not accurate descriptions of the primary basis for household spending or its behavior through the business cycle.

Household Spending