Many Young,working Couples Choose to Have Just One Kid or None

question 57

Multiple Choice

Many young,working couples choose to have just one kid or none at all.These couples hardly have any responsibilities like saving up for children's education or securing children's future.This leaves them with more than enough money to spend on luxury goods.Most of them enjoy high spending power and splurge on a lot of luxurious goods.Which of the following trends is reflected in this scenario?

• A) Declining birthrates
• B) Declining consumer affluence
• C) Increasing life expectancy
• D) Increasing cultural diversity
• E) Increasing population

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Definitions:

Price Level

A measure of the average prices of goods and services in an economy at a given time period.

Real Wealth

The value of an individual's or entity's assets, taking into account the effects of inflation on purchasing power.

Liquidity Preference

The desire to hold cash or easily convertible assets rather than investments that might be harder to convert into cash.

Interest Rate

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.