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Author Question: At the beginning of 2017, Albert planned to buy a new home theater system, laptop computer, and ... (Read 65 times)

Caiter2013

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Question 1

Assume that households have positive wealth. As the interest rate ________, nonlabor income ________ and current consumption ________.


◦ decreases; decreases; decreases
◦ decreases; increases; decreases
◦ increases; increases; decreases
◦ increases; decreases; increases

Question 2

At the beginning of 2017, Albert planned to buy a new home theater system, laptop computer, and hybrid car by borrowing money. Albert already owes $9,000 on other loans. He also planned to buy a new iPod and humidor out of current income. A decrease in interest rates during 2017 will most likely


◦ cause Albert to decide to borrow less money, but not change what he planned to spend on goods purchased with current income.
◦ cause Albert to decide to borrow more money and to spend more on goods purchased with current income.
◦ cause Albert to decide to borrow more money, but not change what he planned to spend on goods purchased with current income.
◦ cause Albert to decide to borrow less money and to spend less on goods purchased with current income.


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Marked as best answer by Caiter2013 on Apr 19, 2019

connor417

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Caiter2013

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Reply 2 on: Apr 19, 2019
YES! Correct, THANKS for helping me on my review


ecabral0

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Reply 3 on: Yesterday
Excellent

 

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