The most important determinant of the level of consumption is

A) credit availability.
B) the level of disposable income.
C) the stock of liquid assets in the hands of consumers.
D) keeping up with the Joneses.
E) consumer expectations.

Disposable Income

Net financial assets for households dedicated to spending and saving, subsequent to income tax reductions.

Credit Availability

The ease with which individuals and businesses can obtain loans and other forms of credit from financial institutions.

Liquid Assets

Assets that can be quickly converted into cash with little impact on their value.