Suppose the majority of students who are graduating in May from a large university have found jobs and signed employment contracts by February.Starting in February,these students are likely to __________ spending and __________ saving.
A) increase; increase
B) decrease; decrease
C) decrease; increase
D) increase; decrease
E) not change their rate of; not change their rate of

Question

Quizplus · Accepted Answer

Since the majority of students have found jobs and signed employment contracts by February, they are likely to have a steady source of income, which will increase their spending. At the same time, they may feel less pressure to save since they have secured their employment. Therefore, they will decrease their saving.

Suppose the Majority of Students Who Are Graduating in May