Which of the Following Will Increase the Net Worth of a Household

question 73

Multiple Choice

Which of the following will increase the net worth of a household?

• A) Decrease saving by $50 per month
• B) Increase the amount borrowed for major purchases
• C) Decrease spending by $5 per day
• D) Invest in possessions whose values do not increase
• E) Increase spending by $5 per day

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Definitions:

Goods and Services

Physical items (goods) and intangible assistance or work (services) provided to satisfy the needs and wants of consumers.

Total Supply of Money

The total amount of monetary assets available in an economy at a specific time, including cash, bank deposits, and liquid assets.

Rates of Growth

The rate at which a variable such as output, income, or population expands over a specific period of time, usually expressed as a percentage.

Unemployment

The situation in which individuals who are willing and able to work are unable to find employment.