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Which of the Following Is True of Discretionary Spending, Which

Question 8

Multiple Choice

Which of the following is true of discretionary spending, which stimulates the economy?


A) Money concentrated in the hands of the wealthy is spread further because there is more of it being spent.
B) Money concentrated in the hands of the poor and working class does not stimulate the economy because too much of it is spent on irresponsible habits or in illegal markets (such as drugs or gambling) .
C) Money concentrated in the hands of the poor, working class, and middle class will be widely spent because there are more people in these categories, buying more things.
D) None of the above.

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