Question

If a family unit is spending more than its current​ income, it must be engaged in one of four actions. Which of the following is not one of those four​ actions?
A. receiving public transfers from a government
B. receiving gifts from friends or relatives
C. borrowing
D. increasing its money holdings or buying assets

Answer 1

Answer:D-Increasing its money holdings or buying assets

Explanation:

If a family unit is spending more than its income it implies that either the family is borrowing money or selling its asset such that the money holdings of the family is decreasing. Thus Family cannot increase its money holdings or buying assets while they spending more than their incomes.

Thus d is the most appropriate among the given options