If the Cross Elasticity of Demand Between Car Insurance and New

question 137

Multiple Choice

If the cross elasticity of demand between car insurance and new cars is -0.41,then car insurance and new cars are

• A) complements.
• B) substitutes.
• C) normal goods.
• D) inferior goods.
• E) unrelated goods.

---

Definitions:

Maturity Value

The total amount payable to an investor at the end of a fixed-income security's life, including both the principal and interest.

Interest-bearing

Describes a financial instrument or account that generates interest income over time.

Notes Receivable

Claims against debtors documented through promissory notes that promise future payment of money.

Note Receivable

A written promise for the payment of a specified amount of money, with interest, by a set date or on demand to the holder of the note.