Jane and Kyle have been married for four years.Jane recently gave birth to a baby girl.In the context of the family life cycle,which of the following is most likely to be true of their spending behavior?
A)They will spend more than average on alcoholic beverages, education, and entertainment.
B)They will increase their spending on health care, clothing, housing, and food.
C)They will increase their spending on alcohol, education, and transportation.
D)They will increase their spending on vehicles, women's clothing, and health care.

Question

Jane and Kyle have been married for four years.Jane recently gave birth to a baby girl.In the context of the family life cycle,which of the following is most likely to be true of their spending behavior?
A)​They will spend more than average on alcoholic beverages, education, and entertainment.
B)They will increase their spending on health care, clothing, housing, and food.
C)They will increase their spending on alcohol, education, and transportation.
D)​They will increase their spending on vehicles, women's clothing, and health care.

Quizplus · Accepted Answer

When a couple has a child, they experience a shift in their spending behavior. They typically spend more on items related to health care, clothing, housing, and food. These expenses are related to the needs of the child and the couple's changing lifestyle. Therefore, option B is the most likely choice for Jane and Kyle's spending behavior after the birth of their baby girl. Option A and C are not correct as they include expenditures that are not usually associated with having a child, such as alcohol and entertainment. Option D includes women's clothing, which is not relevant to the couple's current situation.

Jane and Kyle Have Been Married for Four Years