A Downward-Sloping Demand Curve Reflects

question 20

Multiple Choice

A downward-sloping demand curve reflects

• A)the idea that the demand for the good in question is decreasing as time goes by.
• B)the idea that there are fewer suppliers of the good as time goes by.
• C)the idea that there exists a substitute for the good in question and the price of that substitute is decreasing.
• D)the law of demand.

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Definitions:

Time Value of Money

The concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Face Value

The original value of a financial instrument as stated on the instrument itself.

Compounded Annually

Interest calculation method where the interest amount is added to the principal at the end of each year, and the total becomes the principal for the next year.

Annual Deposits

Regular sums of money deposited into an account or investment annually.