If the Price of the Good Measured on the Horizontal

question 90

Multiple Choice

If the price of the good measured on the horizontal axis falls,the substitution effect is indicated by movement to a

• A)higher indifference curve.
• B)lower indifference curve.
• C)steeper part of the same indifference curve.
• D)flatter part of the same indifference curve.
• E)flatter part of a higher indifference curve.

---

Definitions:

Credit Default Swap

A financial derivative or contract that allows an investor to "swap" or offset their credit risk with that of another investor.

Loan

A sum of money borrowed that is expected to be paid back with interest.

Asset Securitization

The process of pooling various types of contractual debt such as mortgages, and selling their related cash flows to third party investors as securities.

Investment Choices

The various options available to investors for allocating their funds, including stocks, bonds, real estate, and mutual funds.