Refer to the Diagram

question 139

Multiple Choice

Refer to the diagram. The budget line shift that moves the consumer's equilibrium position from point A to point B suggests

• A) an increase in the quantity of Y demanded.
• B) a decrease in the quantity of Y demanded.
• C) a leftward shift in the demand curve for Y.
• D) a rightward shift in the demand curve for Y.

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Definitions:

Market Rate

Market Rate is the prevailing interest rate available in the marketplace on loans, savings, or investments.

Coupon Rate

The annual interest rate paid by a bond's issuer to the bond's holders, usually expressed as a percentage of the bond's face value.

Interest Expense

The cost incurred by an entity for borrowed funds, which may pertain to bonds, loans, lines of credit, or other forms of debt financing.

Coup d'état

A sudden and illegal seizure of government power by a small group, often military, displacing the existing government authorities.