A scientist who does research in economic psychology and who wants to predict the way in which consumers will spend their money must study consumer behavior. He must obtain data both on the resources of consumers and on the motives that tend to encourage or discourage money spending. If an economist were asked which of the three groups borrow most -- people with rising incomes, stable incomes, or declining incomes -- he would probably answer: those with declining incomes. Actually, in the years 1947 to 1950,the answer was: people with rising incomes. People with declining incomes were next and people with stable incomes borrowed the least. This shows us that traditional assumption is that if people who have money expect prices to go up, they will hasten to buy. if they expect prices to go down, they will postpone buying. But research surveys have shown that this is not always true. The expectations of price increases may not stimulate buying. One typical attitude was expressed by
A. not always true
B. reliable
C. in consistent with the findings in investigation
D. not at all wrong
A scientist who does research in economic psychology and who wants to predict the way in which consumers will spend their money must study consumer behavior. He must obtain data both on the resources of consumers and on the motives that tend to encourage or discourage money spending. If an economist were asked which of the three groups borrow most -- people with rising incomes, stable incomes, or declining incomes -- he would probably answer: those with declining incomes. Actually, in the years 1947 to 1950,the answer was: people with rising incomes. People with declining incomes were next and people with stable incomes borrowed the least. This shows us that traditional assumption is that if people who have money expect prices to go up, they will hasten to buy. if they expect prices to go down, they will postpone buying. But research surveys have shown that this is not always true. The expectations of price increases may not stimulate buying. One typical attitude was expressed by
A. Consumer's Purchasing Power
B. Relationship between Income and Purchasing Power
C. Traditional Consuming Views
D. Studies in Consumer Behavior
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