The following determine the level of consumption EXCEPT

JAMB Economics 2024 129 views
Source: JAMB · 2024

The following determine the level of consumption EXCEPT

  1. level of income
  2. savings
  3. the rate of taxes paid
  4. the political climate ✓
Explanation

Consumption depends mainly on how much money people have to spend. Income, savings, and taxes directly affect this.

Political climate may affect confidence, but it is not a direct factor in determining consumption levels.

More income means more consumption. Higher taxes mean less money to spend.

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