Question

The most important determinant of consumption and saving is the
a. level of income.
b. price level.
c. interest rate.
d. level of bank credit.

Answer 1

The answer is D.Level of bank credit.

Answer 2

The most important determinant of consumption and saving is the level of income. hence option A correct.

What affects the buying power of consumers?

The main factor that affects the buying power of consumers is the level of income, if a person earns small they will only buy what they can afford.

Hence, the higher the level of income the higher the purchasing power.

Learn more about purchasing power here:

https://brainly.com/question/9857337

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