Which of the Following Is Usually Considered a Long-Term Financial

question 117

Multiple Choice

Which of the following is usually considered a long-term financial strategy?

• A)Creating a budget this year
• B)Using savings to pay off a loan within one year
• C)Renting an apartment for three years to save for the purchase of a home
• D)Investing in a mutual fund for six years to accumulate retirement funds
• E)Purchasing a six month auto insurance policy to cover the needs of dependents

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Definitions:

Aggregate Demand

The entirety of demand for goods and services within an economy, at a chosen general price level and throughout a specified time period.

Aggregate Supply

The total supply of goods and services that firms in an economy are willing to sell at a given price level in a given time period.

Investment

The purchase of goods that are not consumed today but are used in the future to create wealth, including assets like property, stocks, or bonds.

Aggregate Demand Curve

Curve showing planned purchase rates for all goods and services in the economy at various price levels.