The Substitution Effect Is Unambiguous in Its Direction

question 1

True/False

The substitution effect is unambiguous in its direction.

---

Definitions:

Compounded Annually

Interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a loan or deposit.

Inheritance

Wealth or attributes passed on to heirs upon the death of an individual.

Lump Sum

A lump sum is a single payment of money, as opposed to a series of payments made over time.