Which of the Following Statements Is True of Middle-Class Consumers

question 55

Multiple Choice

Which of the following statements is true of middle-class consumers?

• A)Their family income is usually between $20,000 and $30,000.
• B)They rely on assistance to cover their basic needs.
• C)They have very high discretionary incomes and tend to purchase luxury items.
• D)They tend to be careful about their spending and are often value-conscious.
• E)Their spending patterns are not influenced by economic conditions.

---

Definitions:

Real Interest Rate

The interest rate that has been adjusted to remove the effects of inflation to reflect the true cost of funds to the borrower and the real yield to the lender.

Foreign Demand

The desire and willingness to purchase goods and services from another country, influenced by factors like exchange rates and economic conditions.

Exchange Rate

The price of one currency in terms of another currency.

Net Exports

The value of a country's total exports minus its total imports, representing the net amount of goods and services traded with other countries.