If Goods Are Complements, Then Their

question 281

Multiple Choice

If goods are complements, then their

• A) cross elasticities are positive.
• B) income elasticities are positive.
• C) income elasticities are negative.
• D) cross elasticities are negative.

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Definitions:

Bond Interest Expense

Bond interest expense is the cost incurred by an issuer of bonds for paying interest to the bondholders, typically recognized in the income statement.

Amortization

The gradual reduction of a debt over a period of time through regular payments that cover principal and interest.

Semiannually

Occurring twice a year or every six months.

Interest Payments

The amount of money paid regularly (typically annually or semiannually) for the use of borrowed funds.