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Holdean Property Development Ltd

question 43

Multiple Choice

Holdean Property Development Ltd. has been downgraded to a BB rating (below investment grade) by the major debt rating agencies. What is the immediate consequence of the reclassification?


Definitions:

Consumer Surplus

The gap between the sum consumers are ready and able to spend on a good or service and what they really pay for it.

Normal Goods

Goods for which demand increases as consumer income rises.

Decrease in Income

A reduction in the amount of money received by an individual or entity, typically measured over a particular period of time.

Market Quantity Supplied

The total amount of a specific good or service that is available to consumers in a market at a given price and time.

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