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This Year the Shafer Family Has Dined at Nice Restaurants

Question 118

Multiple Choice

This year the Shafer family has dined at nice restaurants almost four times a week. Between raises received by Mr. and Mrs. Shafer, their family income rose 11 percent, while the cost of living rose by 4 percent and property taxes went up 5 percent in their community. As a result, the family eats outside the home more often now, compared to dining out only a few times a month a few years ago. This reflects


A) an increase in the number of fine restaurants during times of economic upswing.
B) a reaction to an increase of discretionary income.
C) a significant drop in disposable income since there was a negative gain in income.
D) a rise in deflation.
E) a shift from investing to spending.

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