A scientist who wants to predict the way in which consumers will spend their money must study consumer behavior. He must (1) data both on the resources of consumers and on the motive that (2) encourage or discourage money spending. If an economist were asked which of three groups borrow most—people with rising incomes, (3) incomes, or decreasing incomes—he would probably answer, those with (4) incomes. (5) the answer was: people with rising incomes. People with decreasing incomes were (6) and people with stable incomes borrowed the least. This shows us that traditional (7) about earning and spending are not always (8) A. designed B. produced C. created D. conducted
Another traditional assumption is that if people who have money expect prices to go up they will (9) to buy. If they expect prices to go down, they will postpone buying. But research surveys have shown that this is not always (10) . The expectations of price increases may not (11) buying. One typical attitude was expressed (12) the wife of a mechanic in a(n) (13) at a time of rising prices. "In a few months," she said, "we’ll have to pay more for meat and milk; we’ll have less to spend on other things. "Her family had been planning to buy a new car but they postponed this (14) . Furthermore, the rise in prices that has already taken place may be disliked and buyer’s (15) may be produced. This is shown by the following (16) comment: "I just don’t pay these prices; they are too high. " The investigations mentioned above were (17) in America; condition most helpful to spending appears to be price stability. If prices have been stable and people consider that they are (18) , they are likely to buy. Thus, it appears that the common business policy of (19) stable prices is based on a correct understanding of consumer (20) .