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.

Answer 1

Answer:

income level of each household    

Explanation:

When economists attempt to predict the spending patterns of U.S. households, they will typically view the income level of each household as a primary determining factor that influences the individual consumption choices that each will make.  Generally, income level determines how and what an individual spends on. For example, a low income household will spend more on necessities and less on luxury goods and the higher the income, the higher the spending. Income level is very important in determining the spending pattern of households in an economy.

Answer 2

Answer: a. income level of each household

Explanation:

Household INCOME LEVEL goes far in determining how the household spends because to spend on goods and services, one needs funds.

People usually buy according to what they have or can afford and so using data on a household's income to infer what kind of goods and services they will buy or rather their spending pattern is only logical.

Such research will also show what happens when household income decreases or increases so using the income level of each household really is necessary.