Sam is a recent college graduate with a lot of "firsts": First professional job,first new car,first apartment,and first time making all of his own financial decisions.As he works on his monthly budget,he can't help but wonder why he is barely "making ends meet." Each month,it takes his entire paycheck to pay his rent,his car payment,and buy food.Last month,he told his parents,"I'm sure I had more money when I was a starving student!" You recently learned about key economic indicators in your business class.You inform Sam that his problems are caused by severe deflation and lack of demand for products and services.
Level of Learning 3: Application of principles

Question

Quizplus · Accepted Answer

The information provided in this scenario does not suggest that Sam's problems are caused by severe deflation and lack of demand for products and services, so option B is correct. The scenario mentions that Sam is barely making ends meet and struggling with his budget, but there is no indication that this is due to macroeconomic factors such as deflation or lack of demand.

Sam Is a Recent College Graduate with a Lot of "Firsts