Saving money for emergencies and for the future is very important to them. They always try to set aside money for savings even when money is tight. However, the interest rate on their savings account is very low so they're considering other options.

Charles and Ebony don't have any debt, though they're considering taking out a small loan to pay for Ebony to attend classes during the summer. If they do that, she will be able to complete her studies sooner and start earning an income sooner.

Use this template to describe the economic concepts that apply to Charles and Ebony's situation. Remember, if you use any information or ideas from the webtext, be sure to add a citation (and include quotation marks around any exact wording).

ASSIGNMENT TEMPLATE

Explain how scarcity, tradeoff decisions, or opportunity costs are relevant to Charles and Ebony's budget. (Your response should be 2-3 sentences.)