Question

Joe is an 18 year old high school student. If there is a sharp rise in interest rates, which situation BEST reflects how Joe's life might be impacted?
A)He might not be able to eat fast food as often.B)He might have to purchase a less-expensive car.C)He might not go out with his friends every Saturday.D)He might need to make his clothes last a little longer.​

Answer 1

Answer: The correct answer is B) He might have to purchase a less-expensive car.

Explanation:

Increasing interest rates make the process of borrowing money less desirable. Since people usually borrow money for major purchases, the correct answer would be that Joe might have to purchase a less-expensive car. People often use credit to buy a car, and since all of the other options involve much less-expensive situations, we can determine that this is the correct answer.