The five most important variables that determine the level of ________ are disposable income,wealth,expected future income,price level,and interest rate.
A)consumption
B)government purchases
C)planned investment
D)net exports

Question

Quizplus · Accepted Answer

The variables mentioned - disposable income, wealth, expected future income, price level, and interest rate - are all factors that influence consumption, which is the level of spending by households on goods and services. Therefore, choice A, consumption, is the correct answer. The other options - government purchases, planned investment, and net exports - are also important components of aggregate demand but are not directly related to the variables mentioned in the question.

The Five Most Important Variables That Determine the Level of ________