In John Maynard Keynes's model, the most important determinant of current consumption is current income. In Irving Fisher's model, the most important determinant of current consumption is:
A) also current income.
B) the interest rate.
C) lifetime resources.
D) future income.

Question

Quizplus · Accepted Answer

According to Irving Fisher's model, the most important determinant of current consumption is lifetime resources, which includes both current and future income, as well as assets and other resources that can be used to support consumption over a person's lifetime. The interest rate may also play a role in shaping consumption decisions, but it is not considered the most important determinant in Fisher's model.

In John Maynard Keynes's Model, the Most Important Determinant of Current