Carl's Spending Decisions Are Not Affected by the Source of His

question 37

Multiple Choice

Carl's spending decisions are not affected by the source of his money. In this case, Carl is:

• A) not acting as if money is fungible.
• B) using mental accounting.
• C) not using mental accounting.
• D) risk-inconsistent.

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Definitions:

Positive

Characterized by or denoting an effect, result, or attribute that is beneficial or conducive to growth or well-being.

Constant Elasticity

A condition where the elasticity, or responsiveness, of a variable does not change regardless of the level of the variable being examined.

Linear Demand

A market demand situation where a product's price and the quantity demanded have a linear relationship.

Curve

In economics, it typically refers to a graphical representation showing the relationship between two variables.