Luxury assets are assets
A)with wealth elasticities of less than 1.
B)held by savers for investment.
C)used by savers to conduct regular transactions.
D)not subject to federal income tax.

Question

Quizplus · Accepted Answer

Luxury assets are often held by savers for investment purposes, as they can appreciate in value over time. Examples include art, fine wine, and collectible cars. These assets are not primarily used for regular transactions or exempt from federal income tax, and their wealth elasticity typically exceeds 1, indicating demand increases more than proportionally as wealth increases.

Luxury Assets Are Assets