Which Statement Best Explains an Increase in Consumer Spending

question 116

Multiple Choice

Which statement best explains an increase in consumer spending?

• A) People spend more when the price level rises because the dollars they hold are worth more.
• B) People spend more when the price level rises because the dollars they hold are worth less.
• C) People spend more when the price level falls because the dollars they hold are worth more.
• D) People spend more when the price level falls because the dollars they hold are worth less.

---

Definitions:

Loss

The state of being deprived of or of being without something that one has had.

Casualty Insurance

Insurance that protects a party from accidental injury.

Accidental Injury

Physical harm or damage to a person resulting from an unexpected event or incident.

Case Opener

A tool or device designed to open protective casings, commonly associated with packaging or equipment maintenance.