Use the Following to Answer Questions

question 46

Multiple Choice

Use the following to answer questions:
Figure: Trade 2
-(Figure: Trade 2) Refer to the figure. In this figure representing the market for oil, by how much will domestic oil consumption increase or decrease following a tariff on imported oil?

• A) increase by 250 units
• B) increase by 300 units
• C) decrease by 500 units
• D) decrease by 150 units

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Definitions:

Asset-Backed Bonds

Bonds that are secured by a pool of assets, such as loans or receivables, which generate the cash flow to pay bondholders.

TIPS

Treasury Inflation-Protected Securities, a type of U.S. Treasury bond designed to help investors protect against inflation.

Maturity

The date on which the principal amount of a financial instrument, such as a bond or loan, becomes due and is repaid to the investor.

Coupon

The yearly rate of interest distributed on a bond, represented as a percentage of its nominal value.