The use of debt financing to purchase food, clothing, vacations, and other non-durable items
A) is prudent as long as you have an unused balance on your credit card.
B) is imprudent because such purchases will mean that you will soon be making payments on items that have you have already consumed.
C) is prudent as long as you plan to save more in the future.
D) is imprudent unless you need to purchase these items to impress your friends.
B) is imprudent because such purchases will mean that you will soon be making payments on items that have you have already consumed.
You might also like to view...
Which of the following is NOT a property of isoquants?
A) They do not cross. B) The closer they are to the origin, the higher the level of output. C) They have a downward slope. D) They are "thin."
The saws, lathes, and drill presses that woodworkers at Cedar Valley Furniture use to produce furniture are called
a. human capital. b. physical capital. c. natural resources. d. technological knowledge.
According to the income effect of labor supply, if leisure is a normal good, then an increase in the wage rate will ________ the quantity of labor ________.
A. increase; supplied B. decrease; supplied C. increase; demanded D. decrease; demanded
A fixed exchange rate system crisis may be accompanied or followed by
A) unexpected gains of international reserves. B) revaluation of a currency. C) devaluation of a currency. D) deflationary pressures within the country.