Jordan has the following assets and liabilities:Two cars$10,000House$200,000Mortgage$100,000Cash$1,000Car loans$3,000Checking account balance$2,000Credit card balance$1,000Suppose that Jordan wins $100,000 in the lottery. If he uses that money to pay off his mortgage, his wealth would ________; if he puts that money in his checking account, his wealth would ________.

A. increase to $209,000; increase to $209,000
B. not change; increase to $207,000
C. increase to $207,000; not change
D. increase to $209,000; not change


Answer: A

Economics

You might also like to view...

According to the above figure, equilibrium is at point

A) E. B) B. C) C. D) D.

Economics

According to economists who promote sticky-price theories

A) only fiscal policy is an effective stabilization policy. B) only monetary policy is an effective stabilization policy. C) both fiscal and monetary policy can be effective stabilization policies. D) neither fiscal nor monetary policy is an effective stabilization policy.

Economics

A price taking firm’s short-run supply curve is perfectly elastic at the market price.

Answer the following statement true (T) or false (F)

Economics

It costs a company $35,000 to produce 500 graphing calculators. The company's cost will be $35,080 if it produces an additional graphing calculator. If the company produces 501 graphing calculators then

a. its average cost is greater than its marginal cost. b. its average cost and its marginal cost are equal. c. its average cost is less than its marginal cost. d. This cannot be determined from the information given.

Economics