Question

What is the simplest change that can be made to the budget to produce more savings next month? Add to fixed expenses. Decrease food expenses. Reduce rent payments. Increase total income.

Answer 1

The answer to the question is (B) decreases food expenses.

Since the individual wants to reduce budget for a short period of time (within the next month) she should reduce his variable expenses – in which from the option is only decreasing food expenses. It is impossible for her to reduce her fixed expenses (rent, for example) and she should most definitely refrain from adding more. It is near impossible to add total income within such a short period of time as well.