In order for a ratio to be lower, the numerator should be decreased or the denominator should be increased.
See solution.
Practice makes perfect
Dorrie's debt-to-income ratio is 0.39, and the ideal ratio is 0.36 or less. To improve this, she needs to decrease the ratio between her expenses per month and her earnings per month.
Debt-to-Income Ratio=Expenses per Month/Earnings per Month
In order for a ratio to be lower, the numerator should be decreased or the denominator should be increased. To make her ratio lower, Dorrie needs to either decrease her expenses per month or increase her earnings per month.
