A change in the _____ environment can affect consumer purchases of homes, cars, and other items usually bought on credit.
A) legal
B) political
C) social/cultural
D) technological
E) economic

Question

Quizplus · Accepted Answer

Economic factors, such as changes in interest rates, inflation, or unemployment levels, can significantly impact consumer purchases made on credit. For example, high interest rates may discourage consumers from taking out loans to buy homes or cars, while low rates may encourage more borrowing and spending. Similarly, economic downturns may lead to decreased consumer confidence and less willingness to take on debt, while more stable economic conditions may have the opposite effect.

A Change in the _____ Environment Can Affect Consumer Purchases