Which of the Following Explains Why Supply Curves Slope Upward

question 348

Multiple Choice

Which of the following explains why supply curves slope upward?

• A) prices and income
• B) increasing marginal cost
• C) resources and technology
• D) substitutes in production and complements in production

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Definitions:

SIVs

Structured Investment Vehicles, which are investment funds that manage a portfolio of income-generating assets by borrowing in short-term markets to invest in long-term securities.

Commercial Paper

Short-term, unsecured promissory notes, issued by companies, typically used for the financing of accounts receivable, inventories, and meeting short-term liabilities.

Mortgages

Loans specifically created for purchasing real estate, secured by the property itself, which is to be repaid along with interest over a predetermined period.

Mortgage-backed CDOs

Collateralized debt obligations that are secured by mortgage-backed securities as the underlying assets.