At the Beginning of 2017, Joey Planned to Buy a New

question 185

Multiple Choice

At the beginning of 2017, Joey planned to buy a new iPhone, LCD TV, and motorcycle by borrowing money. Joey already owes $25,000 on other loans. He also planned to buy new clothing and DVDs out of current income. An increase in interest rates, during 2017, will most likely

• A) cause Joey to decide to borrow less money, but not change what he planned to spend on goods purchased with current income.
• B) cause Joey to decide to borrow more money and to spend more on goods purchased with current income.
• C) cause Joey to decide to borrow more money, but not change what he planned to spend on goods purchased with current income.
• D) cause Joey to decide to borrow less money and to spend less on goods purchased with current income.

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