Question

Mr. Layte needs a mortgage to buy his first house. Which describes how this will affect Mr. Layte's financial situation?

Answer 1

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Answer:

  A, D

Step-by-step explanation:

Assuming that Mr. Layte must pay for his mortgage from his (otherwise) disposable income, that disposable income will decrease. As in choice A, there will likely be additional ownership expenses besides the mortgage. Under our assumption, Mr. Layte's disposable income does not remain the same or increase.

The appropriate choices are A and D: the amount of money he has to spend on things will decrease ...