Joe and Megan are newly married college graduates. Both have jobs with bright futures. One strategy that they could use to accumulate capital for investment purposes, would be to
A) borrow heavily to buy a house.
B) use their credit cards to acquire assets while prices are relatively low.
C) live on just one of their incomes and save the other.
D) quit their jobs and return to school to earn graduate degrees.

Question

Quizplus · Accepted Answer

Living on one income is difficult for most couples to do. However, an early life style of sacrifice can provide a pool of savings for investment purposes. Ultimately, buying a home is likely to be a good investment, but it makes sense to accumulate the capital for a sizable down payment before doing so.

Joe and Megan Are Newly Married College Graduates