Gary Simpson notices that his neighbor has a brand new Ford F150 truck parked in the driveway.Even though his current car is fine,Gary decides that he needs a new car and goes out and purchases a Tundra with a six-year loan.Which one of the following best explains Gary's spending,which can lead to overindebtedness?
A)Misunderstanding or lack of communication
B)The use of money to punish
C)The expectation of instant comfort
D)Keeping up with the Joneses
E)Overindulgence of children

Question

Quizplus · Accepted Answer

Gary's decision to purchase a new car despite his current car being fine, influenced by his neighbor's new truck, is an example of "Keeping up with the Joneses." This term refers to the comparison to one's neighbors as a benchmark for social class or the accumulation of material goods. To "keep up" with the neighbors, individuals might spend more than they can afford, leading to overindebtedness.

Gary Simpson Notices That His Neighbor Has a Brand New