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

question 98

Multiple Choice

Jim 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 Jim's money demand by $200?

• A)Jim writes a check for $200 to pay down his credit card balance.
• B)Jim writes a check for $200 to pay down her car loan balance.
• C)Jim pays $200 cash for a new lamp.
• D)Jim gets a $200 cash advance on his credit card and puts the proceeds in his checking account.

Calculate the impact of retirement account contributions on taxable income.

Understand the dynamics of employer-matched retirement savings plans and their impact on total savings.

Understand the impact of personal decisions on marital success.

Recognize the importance of communication and flexibility with instructors regarding deadlines.

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Definitions:

Effort Justification

A phenomenon whereby individuals rationalize the effort and resources they put into achieving a goal by increasing their appreciation or valuation of the goal, especially when the effort was substantial.

Belief Perseverance

The psychological phenomenon where individuals cling to their initial views or explanations despite the confrontation with new, contradictory information.

Social Psychology

The examination of individuals' thoughts, emotions, and actions within societal settings through scientific methods.

Belief Perseverance

The tendency for people to hold on to their beliefs even in the face of contradictory evidence.