Other determinants of consumption spending include each of the following except
A) household wealth.
B) nondiscretionary income.
C) income distribution.
D) relative optimism or pessimism.

Question

Quizplus · Accepted Answer

Nondiscretionary income refers to income that is already committed to mandatory spending, such as taxes and essential living expenses, and does not directly determine consumption spending in the way discretionary income does. Choices A, C, and D are factors that can influence consumption spending.

Other Determinants of Consumption Spending Include Each of the Following