If Your Income Increases and Your Consumption of a Good

question 261

Essay

If your income increases and your consumption of a good increases, then, for you, that good is considered:
A.a negative good.
B.a positive good.
C.an inferior good.
D.a normal good.

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Definitions:

Covered Call

An options strategy where an investor holds a long position in an asset and sells call options on that same asset to generate income from the option premiums.

Exchange-Traded Options

Options contracts that are traded on a regulated exchange rather than being dealt with privately between two parties.

OTC Options

Over-the-counter options are trades made directly between two parties, not on a formal exchange, tailored to the parties' requirements.

Counterparty Credit Risk

The risk that the other party in a financial transaction might default on their contractual obligations.