If Goods X and Y Are Substitutes and the Price

question 75

Multiple Choice

If goods X and Y are substitutes and the price of X falls, all other things being equal, the demand curve for Y will

• A)shift to the left.
• B)not shift at all.
• C)shift to the right.
• D)be indeterminate.

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Definitions:

Treasury Bills

Short-term government securities with maturities of one year or less.

Unadjusted Beta

A beta calculation that has not been modified to account for a company's specific volatility or the fiscal environment, reflecting the raw historical volatility of a stock.

Mean-Variance Efficient Portfolio

A portfolio that offers the highest expected return for a given level of risk or the lowest risk for a given level of expected return.

Sensitivity Coefficients

Sensitivity coefficients measure the responsiveness of an asset's return to changes in underlying market factors or risks.