Carl's spending decisions are not affected by the source of his money. In this case, Carl is:
A) not acting as if money is fungible.
B) using mental accounting.
C) not using mental accounting.
D) risk-inconsistent.

Question

Quizplus · Accepted Answer

Carl's behavior indicates that he does not differentiate between sources of money when making spending decisions, which means he is not using mental accounting. Mental accounting refers to the tendency of individuals to allocate money for specific purposes based on subjective criteria, such as the source of the money.

Carl's Spending Decisions Are Not Affected by the Source of His