As the Price of a Good Whose Units Are Measured

question 63

Multiple Choice

As the price of a good whose units are measured along the x-axis increases, holding the consumer's income and the price of the other good constant, the budget line will:

• A)shift inward toward the origin.
• B)shift outward away from the origin.
• C)rotate such that the y-intercept stays the same and the x-intercept shifts toward the origin.
• D)rotate outward away from the origin.

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Definitions:

Historical Levels

Refers to the past recorded levels or values of a financial metric, interest rate, stock price, or any other economic indicator.

Basis Points

A unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument, equal to 1/100th of a percent.

Corporate Bond

A debt security issued by a corporation to raise funds, promising to pay back the principal along with interest at a specified rate and schedule.

Yield To Maturity

The total return anticipated on a bond if it is held until its expiration date.