In the Case of Interest Rate Movements the Most Important

question 16

Multiple Choice

In the case of interest rate movements the most important factor corresponds to

• A) A parallel shift
• B) A slope change
• C) A bowing
• D) An increase in short rates

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Definitions:

Production Possibility Frontier

The production possibility frontier (PPF) is a curve showing the maximum attainable combinations of two products that can be produced with available resources and technology.

Straight Line

The shortest path between two points, used in both geometric figures and in context like depreciation methods in accounting.

Opportunity Cost

The forfeit of not opting for the following most advantageous option when a decision is reached.

Good X

A placeholder term used in economics to represent a generic good or product in theoretical models and discussions.