Which of the Following Would Be the Best Advice in a Decision

question 82

Multiple Choice

Which of the following would be the best advice in a decision to buy or rent a house?

• A)You should objectively perform the financial assessment.
• B)If mortgage payments are more than renting,then you should rent.
• C)Buying is always better because of the equity you get in the long term.
• D)If interest costs are less than renting,then you should buy.

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Definitions:

Spending Multiplier

the ratio of the change in total national income to the initial change in spending that brought it about, illustrating how initial spending leads to increased total spending in an economy.

Aggregate Spending

Aggregate spending is the total amount of spending in an economy, including consumption, investment, government expenditures, and net exports during a specific period.

Autonomous Saving

The portion of savings of an economy that is independent of income levels, often related to baseline savings by consumers and companies.

Aggregate Expenditure

Represents the total spending on goods and services in an economy, including consumption, investment, government purchases, and net exports during a specific period.