The most important determinant of consumption and saving is typically considered to be income. Higher levels of income generally lead to higher levels of consumption, as individuals and households have more financial resources to spend on goods and services. Additionally, income influences saving behavior; as income increases, individuals may save a larger amount or a higher percentage of their income, depending on their preferences, future expectations, and financial goals.
Other factors that can affect consumption and saving include interest rates, consumer confidence, cultural factors, social norms, and economic conditions. However, income is often viewed as the primary determinant in economic analyses.