Because one person's spending is another person's income:
A)if one group in the economy spends more,the incomes of other groups will decrease.
B)if one group in the economy spends less,the incomes of other groups will increase.
C)if one group in the economy spends more,the incomes of other groups will increase.
D)spending by one group does not influence the income of any other group.

Question

Quizplus · Accepted Answer

When one group in the economy spends more, this increases the demand for goods and services, which in turn creates more business for other groups in the economy. This increased business leads to increased income for those other groups, thereby increasing their overall income. Therefore, if one group in the economy spends more, the incomes of other groups will increase.

Because One Person's Spending Is Another Person's Income