Which One of the Following Choices Would Cause the Demand

question 243

Multiple Choice

Which one of the following choices would cause the demand curve for an inferior good to shift to the left?

• A) a fall in incomes
• B) a fall in the price of the inferior good
• C) a rise in incomes
• D) a rise in the price of the inferior good

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Definitions:

Variable Rate Loan

A loan with an interest rate that can change, based on a benchmark interest rate or index, affecting monthly payment amounts.

Call Option

A financial contract that gives the holder the right, but not the obligation, to buy a specified amount of an underlying asset at a set price within a specified time.

Put Option

An agreement in finance that allows the owner to sell a certain quantity of a basic asset at an agreed-upon price before a certain deadline, without being required to do so.

Financial Risk Exposure

represents the potential for financial loss that a company faces due to its financial decisions and market conditions, including changes in interest rates, currency exchange rates, and credit risks.