8
QuizMultiple Choice

Budgeting — Quiz

Question 8 • Economics

Why might variable expenses change a great deal at different times of year?

Answer
A
Heating and cooling costs might vary considerably.
B
Car loan payments become higher in certain seasons.
C
Discretionary spending may rise when fixed expenses rise.
D
Income taxes and withholdings may increase or decrease.

Explanation

Variable expenses can change from month to month because the amount you use affects the cost. Heating bills may rise in cold seasons, while air-conditioning costs may rise in hot seasons, so heating and cooling costs can vary considerably. Car loan payments are usually fixed, and taxes or withholdings are not the best example of seasonal household expenses.

AI-written and checked against the verified answer.

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