Matt has $2000 saved for a trip at Spring Break.Over Christmas break he decides to spend $400 of it on gifts instead of putting the gifts on his credit card,thus avoiding interest charges.He gradually replaces it in his savings account over the next two months.An economist would say this behavior is:

Question

Quizplus · Accepted Answer

Matt's decision to use his savings to purchase gifts instead of putting them on a credit card, which would accrue interest charges, is a financially savvy move. Additionally, his plan to gradually replace the funds over the next two months is a responsible way to maintain his financial stability while still enjoying the holiday season. Therefore, this behavior can be considered rational.

Matt Has $2000 Saved for a Trip at Spring Break