Answer:
The person who earns AED 500 can only spend to achieve short-run goals.
Explanation:
Amount of wage per month = AED 500
For a person to achieve a long-run goal, she must save. Savings build capital resources that are needed for long-run goals. By their nature, long-run goals involve huge investments. Since this wage earner is spending, it is not possible for her to save enough unless she saves more than she spends.
