Joe is an 18 year old high school student. If there is a sharp rise in interest rates, which situation BEST reflects how Joe's life might be impacted?

A) He might not be able to eat fast food as often. B) He might have to purchase a less-expensive car. C) He might not go out with his friends every Saturday. D) He might need to make his clothes last a little longer.

Answer: The correct answer is B) He might have to purchase a less-expensive car.

Explanation:

Increasing interest rates make the process of borrowing money less desirable. Since people usually borrow money for major purchases, the correct answer would be that Joe might have to purchase a less-expensive car. People often use credit to buy a car, and since all of the other options involve much less-expensive situations, we can determine that this is the correct answer.