If an economist wanted to investigate spending patterns of low-income individuals, what data would be most relevant?

The most relevant data for investigating the spending patterns of low-income individuals would indeed be census data and retail sales figures. Census data offers comprehensive demographic information, which can reveal vital insights about income levels, employment status, household composition, and geographic distribution among low-income populations. This data allows economists to identify specific trends and characteristics of low-income individuals and how these factors influence their spending habits.

Retail sales figures, on the other hand, provide concrete evidence of what low-income individuals are purchasing and where they are likely to shop. Analyzing this data helps in understanding the types of goods and services that are in demand within this demographic, as well as their consumption patterns. Combining these two sources of information enables economists to develop a nuanced understanding of the economic behavior of low-income groups, leading to more targeted economic policies and interventions.

In contrast, the other types of data—prime lending rates of neighborhood banks, the federal discount rate, and city-wide wholesale distribution figures—focus on different aspects of the economy. While these can influence overall economic conditions, they do not directly reflect the personal spending habits and financial circumstances of low-income individuals. Therefore, they would be less useful for an economist specifically looking to examine spending patterns in this demographic.