Reference: Ref 23-3 (Figure: Budget Constraint) Refer to the Figure

question 20

Multiple Choice

Reference: Ref 23-3 (Figure: Budget Constraint) Refer to the figure. If the price of sneakers rises, then the budget constraint in the figure will:

• A) not change.
• B) become steeper.
• C) become flatter.
• D) shift to the left.

---

Definitions:

Secured Bond

Bond issued by a corporation that pledges specific assets as security to meet the terms of the bond agreement.

Debenture Bond

A type of debt instrument not secured by physical assets or collateral but based on the issuer's creditworthiness and reputation.

Sold at Discount

A sale transaction in which an item is sold for less than its regular or listed price.

Bond Payable

A long-term debt instrument issued by corporations or governments to raise capital, with the obligation to pay back with interest.