A Shift in a Curve Represents a Change In

question 8

Multiple Choice

A shift in a curve represents a change in:

• A) the variable on the horizontal axis.
• B) the variable on the vertical axis.
• C) a third variable that is not on either axis.
• D) any variable that is relevant to the relationship being graphed.

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Definitions:

Trading Securities

Financial assets such as stocks or bonds, purchased with the intention of selling them in the short term to profit from price fluctuations.

Face Value

The nominal or original cost of a bond, share, or financial instrument as stated by the issuer.

Amortized

The process of gradually writing off the initial cost of an asset or paying down a debt over a period of time through regular payments.

Available-For-Sale Securities

Securities that management expects to sell in the future but which are not actively traded for profit.