If You Consume Less of a Good as Your Income

question 128

Multiple Choice

If you consume less of a good as your income increases:

• A)your demand curve is not downward sloping for that good.
• B)the good must be an inferior good.
• C)the good must not have any close substitutes.
• D)your quantity demanded changed by a movement along the demand function.

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Definitions:

Non-Redeemable GICs

Guaranteed Investment Certificates that cannot be cashed in before their maturity date without incurring a penalty.

Maturity Value

The amount of money an investment will be worth at the end of its term, including the original principal and all accrued interest.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, accounts payable, and inventories.

Market Rate

The prevailing rate at which a specific asset can be bought or sold in the marketplace, often influenced by supply and demand.