Many governments that regularly transfer money to individuals—to provide supplemental incomes for senior citizens, for example—have long done so electronically, but other countries typically have distributed physical money and have only recently developed electronic transfer infrastructure. Researchers studied the introduction of an electronic transfer system in one such location and found that recipients of electronic transfers consumed a different array of foods than recipients of physical transfers of the same amount did. One potential explanation for this result is that individuals conceive of and allocate funds in physical money differently than they conceive of and allocate funds in electronic form.
Which finding from the study, if true, would most directly weaken the potential explanation?
Choose 1 answer:
Choose 1 answer:
(Choice A) Recipients of electronic transfers typically spent their funds at a slower rate than recipients of physical transfers did.
A
Recipients of electronic transfers typically spent their funds at a slower rate than recipients of physical transfers did.
(Choice B) Some recipients of physical transfers received small amounts of money relatively frequently, while others received large amounts relatively infrequently.
B
Some recipients of physical transfers received small amounts of money relatively frequently, while others received large amounts relatively infrequently.
(Choice C) Recipients of physical transfers tended to purchase food about as frequently as recipients of electronic transfers did.
C
Recipients of physical transfers tended to purchase food about as frequently as recipients of electronic transfers did.
(Choice D) Nearly every recipient of an electronic transfer withdrew the entire amount in physical money shortly after receiving the transfer.
D
Nearly every recipient of an electronic transfer withdrew the entire amount in physical money shortly after receiving the transfer.
1 answer
This finding would weaken the potential explanation that individuals allocate funds differently based on the form of transfer. If recipients of electronic transfers are spending their funds at a slower rate than recipients of physical transfers, it suggests that the form of transfer may not be the primary factor influencing their spending behavior.