Question

The new practice of buying goods with credit led to? 
A. a decline in demand for foreign goods
B. a rise in the American family income 
C. a decrease in demand for products
D. a false sense of prosperity in the US

Answer 1

a. it made us self sufficient for years afterwards

Answer 2

The new exercise of purchasing the goods and commodities on credit has lead to the consequence of:

D). a false sense of prosperity in the US.

• The latest trend of purchasing the goods you require allows people to buy any item of their choice even if it is out of their budget as the amount can be paid in later or in installments.
• However, this is enhancing the purchasing power of the people yet it also develops a false image and feeling of affluence and success which actually is not true.
• The actual growth, productivity, or income of the individual remains the same yet they feel prosper by purchasing the goods on credit.
• Therefore, on one hand, it is easing the life of people but on the other, increases their dependency and compels them to go out of their range while making purchases which is a negative consequence.

Thus, option D is the correct answer.

Learn more about 'credit' here:

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