Saburo and Akiko Watanabe have been married for a bit less than three years and just had their first baby. They want to have another child within two or three years and look forward to “settling down” into the classic American dream of a home with a large yard, a dog, and BBQs on lazy summer afternoons.
Both Saburo and Akiko have professional degrees and well-paying jobs. Each of them earns roughly $80,000 per year, which has allowed them to save up for a down payment on a nice house. Currently, they are wondering if one of them should take some time off (for say, five to ten years) from work and devote the freed-up time to building a family. They both care deeply about instilling the right mixture of Japanese and American values in their children and are worried that without adequate parental involvement, their children may lose track of their Japanese heritage.
The following lists nine decisions that Saburo and Akiko will be facing in the near future:
Decision # Description of Decision
1 Reconsidering the decision to give up one income (neither person has quit yet).
2 Deciding whether to buy a second car (Saburo and Akiko currently only have one car because they live in the city).
3 Deciding whether to pay this month’s mortgage payment by check or electronic transfer.
4 Deciding whether to hire a housekeeper.
5 Deciding the type of dog to get.
6 Deciding whether to spend $10,000 on a 4-week tour to Japan and Southeast Asia.
7 Deciding whether to have the stay-at-home spouse look for part-time, home-based employment.
8 Deciding whether to grill steak or fish for their dinner party this coming Saturday.
9 Deciding which house to buy.

Required:
a. Classify each decision according to its time horizon, short term or long term. Provide a brief rationale for each classification.
b. As discussed in the text, many short-term decisions have longer-term implications.
Given this linkage, what is the benefit from classifying decisions according to their time horizon?