Question

If Aiyana now raises her rent, car, and non- essentials budget, what would likely happen?

A. Aiyana would still have extra to put in savings.

B. Aiyana would always overspend her budget.

C. Even with a higher income, Aiyana would not save.

D. Aiyana would still have extra to pay her credit card.

Answer 1

Answer: C. Even with a higher income, Aiyana would not save.

Step-by-step explanation: When Aiyana increases her expenses for rent, car, and non-essentials, it means that she is allocating more of her income towards these categories. As a result, her disposable income, or the amount of money left after paying for necessary expenses, would decrease.

If Aiyana's income remains the same and she increases her expenses, it would lead to a situation where her expenses exceed her income. This would make it difficult for her to save money since she would be spending more than what she earns.