Which of the Following Best Explains an Increase in Consumer

question 49

Multiple Choice

Which of the following best explains an increase in consumer spending?

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

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Definitions:

Pricing Strategies

Comprehensive plans developed to find the optimal price point to maximize sales and profits while considering costs, competition, and customer demand.

Capital

In economics, capital refers to financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the physical factors of production and facilities.

Risk-Averse

The preference to avoid taking risks, favoring safer or more predictable outcomes over potentially higher but riskier rewards.

Exporting

Exporting is the process of selling goods or services produced in one country to buyers in other countries.