Figure 5-13 -When the Price of a Good Changes but the Price

question 119

Multiple Choice

Figure 5-13
-When the price of a good changes but the price of the only other good bought by a consumer stays constant, his

• A)budget line shifts.
• B)indifference curves shift.
• C)budget line changes slope.
• D)indifference curves change slope.

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Definitions:

Interest Payable

This refers to the amount of interest expense that has accrued but has not yet been paid by the company.

Periodic Bond Interest Payments

The regular interest payments made to bondholders during the life of the bond.

Present Value

The immediate value assigned to a future sum of money or cash movements, based on a particular return rate.

Interest Period

The duration over which interest is calculated on a loan or investment, which could be monthly, quarterly, semiannually, or annually.