Question

Arthur and Janice have three cars but never drive one of them. They plan to sell the one they do not drive when the economy expands next year. Why is this decision likely poor money management?

Answer 1

Arthur and Janice are trying to time the market, which may not work.
Arthur and Janice are trying to wait until inflation increases to get more value for their car, but inflation will actually erode the value of the car.
Arthur and Janice think they can avoid taxes by waiting to sell, but they cannot.
Arthur and Janice are hoping for interest rates to rise, but interest rates do not rise during economic expansions.

Answer 2

@zynell

Answer 3

A

Answer 4

its A?

Answer 5

Linus's retirement funds are largely invested in traditional bonds. Which economic policy would be most risky for him?


Select the best answer from the choices provided.
The government increases spending on public works to create jobs.
The government increases inflation to encourage lending and business expansion.
The government reduces taxes to encourage consumption.
The government bans COLAs.

Answer 6

@zynell

Answer 7

the first one is A, this one is B

Answer 8

ok

Answer 9

The term inflation refers to _____.


Select the best answer from the choices provided.

the change in value of a certain amount of money
the change in price of one good from one year to the next

Answer 10

B

Answer 11

The U.S. income tax is an example of _____.


Select the best answer from the choices provided.
regressive taxation
inflation
market timing
progressive taxation

Answer 12

D

Answer 13

A COLA most directly helps to protect income against _____.


Select the best answer from the choices provided.
taxes
inflation
booms
busts

Answer 14

@zynell

Answer 15

D

Answer 16

its not B?

Answer 17

inflation is increased price from year to year. you dont increase the price of income hun

Answer 18

A COLA gives workers a pay increase to match inflation to maintain their ability to purchase goods.

Answer 19

@zynell what you think?

Answer 20

yeah

Answer 21

its Inflation right?

Answer 22

yes it is.

Answer 23

Susan would like to buy a house in the near future using the money she will inherit from her grandfather to make the down payment on a loan. Which of the following policies would hurt her the most?


Select the best answer from the choices provided.
The government increases sales tax to balance the budget.
The Fed increases interest rates to slow down a boom.
The government replaces a property tax with a capitation tax.
The Fed decreases interest rates to stop a bust.

Answer 24

im figuring this out

Answer 25

She is making a downpayment from Her grandfather's money, she isnt borrowing money

Answer 26

we can eliminate A AND C

Answer 27

The actions of the Fed can dramatically impact how much it costs Sally to buy a home or car or to pay off credit card debt.

Answer 28

@zynell i think is D what you think?

Answer 29

what are the options?

Answer 30

The Fed increases interest rates to slow down a boom.

Answer 31

The Fed decreases interest rates to stop a bust.

Answer 32

post the question w/ the answers together, cuz im confused

Answer 33

ill post a new question

Answer 34

kk