Joan Has the Following Assets and Liabilities Which of the Following Actions Would Increase Joan's Money Demand

question 33

Multiple Choice

Joan has the following assets and liabilities:  
$\begin{array}{l|r|}\hline \text { Credit card balance } & \$ 1,000 \\\hline \text { Cash } & \$ 200 \\\hline \text { Government bonds } & \$ 3,000 \\\hline \text { Checking } & \$ 300 \\\hline \text { Car loan balance } & \$ 10,000 \\\hline \text { Car } & \$ 15,000 \\\hline\end{array}$
 
Which of the following actions would increase Joan's money demand by $100?

• A)Joan writes a check for $100 to pay down her credit card balance.
• B)Joan writes a check for $100 to pay down her car loan balance.
• C)Joan pays $100 cash for a new lamp.
• D)Joan sells a $100 government bond and puts the proceeds in her checking account.

---

Definitions:

Ultimatum Game

A game theory experiment where two players decide how to divide a sum of money, with the offer possibly being rejected by the receiver.

Individualism

A social theory favoring freedom of action for individuals over collective or state control.

Collectivism

A cultural or societal ethos that emphasizes the importance of groups and the interconnectedness of individuals within a society, contrasting with individualist orientations.

Inclusion-Exclusion

Principles or practices within groups or organizations that either facilitate the integration and acceptance of diverse members or delineate boundaries that exclude or limit participation of certain individuals.