Question

This measure enables consumers to gain buying power.

A. When taxes rise, this income declines.
B. The level of interest rates has a significant influence on the availability of this measure of buying power.
C. Consumers purchase entertainment, appliances, and vacations with this measure of buying power.
D. Because of differences in educational levels, professions, and wealth, this measure is not equally distributed in the United States.

Answer 1

Disposable income is the measure that enables consumers to gain buying power and is influenced by taxes, interest rates, and an individual's wealth or socioeconomic status.

Step-by-step explanation:

The measure being discussed that enables consumers to gain buying power appears to be related to disposable income or purchasing power.

Disposable income is affected by various factors.

For instance, when taxes rise, consumers have less income to spend on goods and services, decreasing their buying power.

Conversely, interest rates play a crucial role as well; as they rise due to increased demand for money and credit, it gets more expensive to borrow.

This discourages investments by businesses and reduces consumption by households on big-ticket items like homes and cars.

High interest rates directly impact consumer spending on entertainment, appliances, and vacations.

Lastly, the unequal distribution of income due to different levels of education, professions, and overall wealth highlights that this buying power is not equally accessible across the board.