A nation's purchasing capability tends to increase when the proportion of
A)upper-income households increases.
B)middle-income households increases.
C)top wage earners increases.
D)top wage earners decreases.
E)lower-income households increases.

Question

Quizplus · Accepted Answer

Middle-income households have more purchasing power compared to lower-income households and are more likely to make significant purchases. Upper-income households already have high purchasing power, while lower-income households may struggle to make significant purchases. Increasing the proportion of middle-income households in a nation will lead to an overall increase in purchasing capability.

A Nation's Purchasing Capability Tends to Increase When the Proportion