In the Keynesian model,what is the primary determinant of consumption spending?
A)personal income
B)real wealth
C)disposable income
D)household debt

Question

Quizplus · Accepted Answer

In the Keynesian model, the primary determinant of consumption spending is disposable income, which is the amount of income households have after paying taxes. This is because households tend to spend a larger proportion of their disposable income than their personal income or real wealth. Household debt may affect consumption spending in the short run, but it is not a primary determinant.

In the Keynesian Model,what Is the Primary Determinant of Consumption