John has $4000 in savings to buy an engagement ring for his girlfriend even though he has no plans to propose in the near future.When his transmission needs to be replaced in his car,John charges the $2000 worth of auto repair.John's decision is an example of:

Question

Quizplus · Accepted Answer

John's decision to charge the auto repair expense even though he has savings specifically for an engagement ring shows that he is making a false distinction about his money. He is separating his savings from his other expenses and not recognizing that money is fungible.

John Has $4000 in Savings to Buy an Engagement Ring