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Marcella Has $2,000 in Cash, Which She's Saving to Spend

Question 16

Multiple Choice

Marcella has $2,000 in cash, which she's saving to spend on a trip over spring break. She charges $600 to her credit card purchasing holiday gifts for her family. She must pay 10 percent interest on the card's outstanding balance every month, and decides to pay off the credit card balance gradually over the next two months. An economist would categorize Marcella's behavior as:


A) rational.
B) irrational.
C) misallocated.
D) scarce.

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