At the Beginning of 2017, Albert Planned to Buy a New

question 19

Multiple Choice

At the beginning of 2017, Albert planned to buy a new home theater system, laptop computer, and hybrid car by borrowing money. Albert already owes $9,000 on other loans. He also planned to buy a new iPod and humidor out of current income. A decrease in interest rates during 2017 will most likely

• A) cause Albert to decide to borrow less money, but not change what he planned to spend on goods purchased with current income.
• B) cause Albert to decide to borrow more money and to spend more on goods purchased with current income.
• C) cause Albert to decide to borrow more money, but not change what he planned to spend on goods purchased with current income.
• D) cause Albert to decide to borrow less money and to spend less on goods purchased with current income.

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Definitions:

Mainland

The principal landmass of a country or continent, as distinguished from islands or peninsulas.

Island Chain

A series of islands closely located, often formed by volcanic activity, which can be found in oceans and seas around the world.

Economic Service

Services that lead to the production of economic value, including industry, banking, transportation, and any service contributing to the economy.

Wild Species

Plants, animals, and organisms that grow or live wild in an area without being introduced by humans.