The Relationship in the Above Figure Suggests That When the Interest

question 118

Multiple Choice

The relationship in the above figure suggests that when the interest rate is 5 percent

• A) a decrease in income will be associated with a decrease in expenditures.
• B) a decrease in income will be associated with an increase in expenditures.
• C) an increase in income will be associated with a decrease in expenditures.
• D) there is no relationship between expenditures and income.

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Definitions:

Advancing Issues

Refers to stocks or securities that have increased in price over a given period.

Point and Figure

A charting method used in technical analysis, focusing solely on price movements rather than time or volume, to identify supply and demand trends.

Congestion Areas

Regions on a chart where a financial security's price has traded within a narrow range for a period, indicating balance between supply and demand.

Sell Signal

An indication, based on technical analysis or other factors, suggesting that it might be an advantageous time to sell a particular investment.