When the Income-Consumption Curve Has a Positive Slope Throughout Its

question 97

Multiple Choice

When the income-consumption curve has a positive slope throughout its entire length, we can conclude that

• A) both goods are inferior.
• B) both goods are normal.
• C) the good on the vertical (y) axis is inferior.
• D) the good on the horizontal (x) axis is inferior.

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Definitions:

Notes Receivable

Notes receivable are written promises for amounts to be received by a business, typically including interest, from another party usually within a set time frame.

Accounts Payable

Refers to the amounts a company owes to creditors for items or services purchased on credit.

Notes Payable

A liability in a company's balance sheet that records amounts the company owes because it borrowed money, or a formal written agreement to pay a specific amount in the future.

Maturity Value

The amount of the note that is due on the date of maturity (Principal + Interest).