At very low levels of income, consumer spending is likely to
A) be less than income.
B) be greater than income.
C) be the same as income.
D) be the same as savings.

Question

Quizplus · Accepted Answer

At very low levels of income, consumers tend to spend more than their income as they prioritize their basic needs such as food, shelter, and health over saving for future expenses. They may also take on debt or utilize credit to cover these essential expenses.

At Very Low Levels of Income, Consumer Spending Is Likely