Which of the following people—none of whom has any financial or housing wealth—is most likely to be spending all of their current income?
A) a low income person expecting continued low income throughout life
B) a low income person expecting a dramatic rise in income in the future
C) a high income person expecting continued high income throughout life
D) a high income person expecting a dramatic drop in income in the future
E) a high income person expecting to retire soon, and live for a long time afterward
B
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Potential solutions to sell a high-quality used car include
a. offering a warranty b. selling through a reputable dealer c. documenting the complete repair history d. all of the above
Which of the following is an appropriate monetary policy if the Fed wants to increase the money supply?
a. An increase in the required reserve ratio. b. An increase in the discount rate. c. Purchases of bonds in open market operations. d. Higher taxes on interest income.