Consider a Diagram in Which the Variable Measured on the Y-Axis

question 199

Multiple Choice

Consider a diagram in which the variable measured on the y-axis remains constant while the variable measured on the x-axis increases.The graph of these two variables is a

• A) vertical line.
• B) horizontal line.
• C) line that has positive slope.
• D) line that has a negative slope.
• E) non-existent because the two variables are not related.

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Definitions:

Dividend

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Annual Real Rate

The annual rate of return on an investment, adjusted for inflation, indicating the real purchasing power increase over the investment period.

Holding-Period Return

The total return received from holding an asset or portfolio of assets over a specified period, including interest, dividends, and capital gains.

Interest

The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.