Miguel Is a 20 Year Old College Student Who Works

question 314

Multiple Choice

Miguel is a 20 year old college student who works part-time and earns an annual income of $12,000. To smooth out his life cycle changes in income, Miguel can

• A)save his earnings to use when he is middle-aged.
• B)lend money to a friend to purchase a new car.
• C)borrow money to pay for college, which he will later repay when his income rises.
• D)attempt to pay for college from his current earnings.

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Definitions:

Distribution

The process of delivering products, goods, or services from the production point or supplier to the end consumer.

Price Adjustment Contract

A contractual agreement that allows for changes in the price based on certain conditions or indices, often used to account for inflation or cost increases.

Economic Changes

Adjustments or shifts in the conditions of an economy, affecting factors like prices, jobs, and wealth distribution.

Currency Values

The worth of different forms of money in terms of one another, impacting international trade and economics.