Changes in which of the two factors below would most likely cause a change in consumer spending?
The following list of factors,are related to the aggregate demand curve.
A) 1 and 3
B) 2 and 4
C) 5 and 10
D) 8 and 9

Question

Changes in which of the two factors below would most likely cause a change in consumer spending?
The following list of factors,are related to the aggregate demand curve. 
A) 1 and 3 
B) 2 and 4 
C) 5 and 10 
D) 8 and 9

Quizplus · Accepted Answer

Factors 2 and 4 are related to consumer spending. Factor 2 is the level of disposable income of households, which affects their ability to spend. Factor 4 is the expectation of future income and economic conditions, which affects their willingness to spend. Therefore, changes in these two factors would most likely cause a change in consumer spending.

Changes in Which of the Two Factors Below Would Most