(Consider This) U. S. consumption increased between March 2000 and July 2002 even though stock values declined by $3. 7 trillion. One of the reasons was that:
A)lower interest rates allowed many households to reduce their monthly loan payments and increase their consumption spending.
B)deflation occurred, which increased purchasing power.
C)economic growth accelerated relative to the prior two years.
D)the unemployment rate dramatically declined.
Answer:A
(Consider This) U. S. consumption increased between March 2000 and July 2002 even though stock values declined by $3. 7 trillion. One of the reasons was that:
A)lower interest rates allowed many households to reduce their monthly loan payments and increase their consumption spending. B)deflation occurred, which increased purchasing power. C)economic growth accelerated relative to the prior two years. D)the unemployment rate dramatically declined.