Mo's current income is $100 more per month than his current consumption needs. He decides to use the $100 to reduce his credit card debt. As a result, his:
A. assets and his wealth will increase.
B. liabilities will decrease and his wealth will increase.
C. assets will decrease and his wealth will increase.
D. liabilities and his wealth will decrease.
Answer: B
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When drawn against the real interest rate, the output supply curve is upward sloping because labor supply is
A) increasing in the real interest rate and labor demand is independent of the real interest rate. B) decreasing in the real interest rate and labor demand is independent of the real interest rate. C) independent of the real interest rate and labor demand is increasing in the real interest rate. D) independent of the real interest rate and labor demand is decreasing in the real interest rate.
In game theory, the strategy that always yields the highest benefit for the player using it is the
A) dominant strategy. B) cooperative strategy. C) prisoners' strategy. D) matrix strategy.
Cost-of-living adjustments are:
A. indexed payments. B. common in the U.S. C. not performed on social security payments. D. not very common in Europe.
Economists perceive a college applicant's grade point average and standardized test scores (such as SAT and ACT scores) to be rationing devices
Indicate whether the statement is true or false