Which of the following statements is false?

A) If people feel wealthier because their stock portfolios have risen,they tend to increase their consumption of goods and services.
B) One of the many factors that caused the Great Depression was that by 1930 the market for consumer durables was saturated.
C) The permanent income hypothesis implies that the strongest influence on consumption is not one's present level of income,but rather one's estimated average lifetime income.
D) When people expect inflation they tend to postpone major purchases until prices stabilize.

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Rasita Chauhan · Accepted Answer

Final Answer : D, Explanation :  The statement D is false because when people expect inflation, they are more likely to accelerate their purchases of major items to avoid higher prices in the future, rather than postpone them. This is because buying before prices go up can lead to savings and prevent the cost of purchasing those goods from increasing.

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