Figure 6-3 -In Figure 6-3(b), as Price Falls from $15 to $6

question 244

Multiple Choice

Figure 6-3
-In Figure 6-3(b) , as price falls from $15 to $6, total expenditure

• A)falls.
• B)increases.
• C)remains constant.
• D)first falls and then increases.

---

Definitions:

Annual Coupon Bond

A bond that pays interest (coupon) to bondholders once a year until maturity, when the principal amount is repaid.

Inflation

The rate at which the general level of prices for goods and services is rising, and, consequently, the purchasing power of currency is falling.

Standard Deviation

A measure of the dispersion or variability in a set of data or probability distribution.

Returns

The gains or losses from an investment over a specific period, usually expressed as a percentage.