The Axiom That States That, If Bundle X Is Revealed

question 12

True/False

The axiom that states that, if bundle x is revealed to be preferred to bundle y (either directly or indirectly) and bundle y is different from x, then bundle y cannot be directly or indirectly revealed to be preferred to x is called the Strong Axiom of Revealed Preference (SARP).

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Definitions:

Market Return

Market return refers to the total return on investment from a market index, which includes dividend payments and capital gains or losses.

Interest Semiannually

The payment of interest two times per year on a loan or bond.

Bond Covenant

Legal agreements between bond issuers and bondholders that specify terms and conditions to protect the interests of both parties.

Sinking Fund

A savings fund accumulated over time for the specific purpose of paying off a debt or replacing a capital asset in the future.