Use the Figure Below to Answer the Following Questions

question 5

Multiple Choice

Use the figure below to answer the following questions.

Figure 1A.2.3
-Refer to Figure 1A.2.3. If you were told that economic theory predicts that higher levels of the rate of interest (x) lead to lower levels of sales of houses (y) , which graph would you pick to represent this economic relationship?

• A)(a)
• B)(b)
• C)(c)
• D)(d)
• E)(a)or (d)

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Definitions:

Conditional Endorsement

An endorsement whereby payment can be made only on the fulfillment of a predecided condition, such as painting one’s house.

Negotiability

The ability of a document or instrument to be legally and freely transferred from one party to another.

Instrument Dishonored

A legal term for when a negotiable instrument (like a check or promissory note) is not honored or paid upon presentation.

Insufficient Funds

A situation where an account does not have enough money to cover transactions, leading to declined payments or penalties.