In macroeconomics, "income-determined spending"is:
A) spending by businesses based on income earned from the sale of their products.
B) household spending based on income earned from producing goods and services.
C) spending on income earning assets, such as factories, machinery, and interest-bearing securities.
D) all of the above.

Question

Quizplus · Accepted Answer

Income-determined spending refers specifically to the expenditures of households that are based on the income they earn from producing goods and services. This concept is central to understanding consumer behavior in macroeconomics, as it highlights the direct relationship between income levels and spending patterns.

In Macroeconomics, "Income-Determined Spending"is