Households in Canada more completely smooth out expenditures on
A) durable goods and nondurable goods than on services.
B) durable goods than on nondurable goods and services.
C) nondurable goods and services than on durable goods.
D) services and durable goods; nondurable goods.

Question

Quizplus · Accepted Answer

Studies have shown that households in Canada tend to more completely smooth out expenditures on nondurable goods (e.g. groceries, clothing) and services (e.g. utilities, transportation) than on durable goods (e.g. appliances, furniture, cars). This may be because durable goods are typically more expensive and require more substantial financial planning in advance.

Households in Canada More Completely Smooth Out Expenditures on