Question

The more expensive the car, the ______ the payments, and the ______ you can put toward other investments

A) higher; more
B) higher; less
C) lower; less
D) lower; more

Answer 1

The correct answer is B) higher; less because purchasing an expensive car leads to higher payments which reduces the funds available for other investments.

Step-by-step explanation:

The correct answer to the question is B) higher; less. The logic behind this is that if you have an expensive car, you will have to make higher monthly payments to cover the cost of the car loan. These higher payments reduce the amount of money that is available to put toward other financial priorities or investments. This is a basic economic trade-off where allocating more of your budget towards repaying a debt means having less disposable income to invest elsewhere.