Which of the Following Would Cause a Movement Up (Or

question 212

Multiple Choice

Which of the following would cause a movement up (or leftward) along the demand curve for European autos in the United States?

• A)an increase in the price of American autos 
• B)a decrease in the price of American autos 
• C)an increase in income in the United States 
• D)an increase in the price of European cars

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Definitions:

Hedger

An individual or entity that enters into a financial contract to offset potential losses or gains in a companion asset.

American Call Option

A type of call option that can be exercised at any time before its expiration date for purchasing an underlying asset at an agreed-upon price.

Predetermined Price

A price agreed upon by all parties in a financial contract or transaction, set before any exchanges are made.

Security

A financial asset signifying either an equity stake in a corporation that's publicly traded (known as stock), a debt investment in a company or government (referred to as a bond), or entitlements to ownership through an option.