Which of the Following Will Raise Consumer Expenditures

question 284

Multiple Choice

Which of the following will raise consumer expenditures?

• A)an increase in interest rates
• B)a general decline in housing prices
• C)an increase in expected future income
• D)an increase in the price level
• E)an increase in the unemployment rate

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Definitions:

Pay Compression

A situation where there is only a small difference in pay between employees regardless of their experience, skills, or seniority, often leading to dissatisfaction and motivational issues.

Experience Levels

Refers to the degrees of knowledge, skill, and proficiency acquired through work or education over time.

Performance Abilities

The capabilities and skills that an individual possesses which contribute to their effectiveness and efficiency in job tasks.

Wages

Generally refer to hourly compensation paid to operating employees; the basis for wages is time.