Question

When economists attempt to predict the spending patterns of U.S. households, they will typically view the ____________ as a primary determining factor that influences the individual consumption choices that each will make.

a. income level of each household
b. nation's perennial political debate
c. national average spending level
d. national average savings level

Answer 1

The answer is A.

Step-by-step explanation:

The main determinant of spending or consumption for households is income especially disposable income. Disposable income is the income after tax and other statutory incomes have been deducted.

The higher the disposable income the higher the amount spent on consumption and the lower the disposable income the lower the amount spent on consumption

With a higher income, consumers have more spare money to spend.