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Selling short‑term government securities and using the funds to purchase inventory reduces the current ratio.
Marginal Utility
The additional satisfaction or benefit received by consuming one more unit of a good or service.
Budget Line
A representation of all possible combinations of two goods that an individual can afford given their income and the prices of the goods.
Income-Consumption Curve
A graphical representation showing how a consumer's optimal bundle of goods varies with changes in income.
Price Elasticity
A measure reflecting the impact of price variations on the demand for a particular product.
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