Question

In general, higher levels of consumer spending indicate that

Answer 1

The correct answer is B) the economy is relatively healthy.

In general, higher levels of consumer spending indicate that the economy is relatively healthy.

If consumers have confidence in the economy, they are going to spend their money. If inflation is controlled, prices are stable, they have jobs and a decent income, they are going to have some left to spend on entertainment, apparel, dining, and other things. This creates confidence in that the economy is doing good.

The other options of the question were A) unemployment is looming. C) recessionary conditions are building. D) interest rates are unstable or falling.

Answer 2

In general higher levels of consumer spending indicate that recessionary conditions are building.