The Slope of the Budget Line Represents

question 146

Multiple Choice

The slope of the budget line represents:

• A) the marginal rate of substitution.
• B) the market rate of substitution.
• C) the budget rate of substitution.
• D) the opportunity rate of substitution.

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Definitions:

Commercial Paper

Short-term, unsecured promissory notes issued by corporations to finance their operations.

Transferee

An individual or entity that receives property, rights, or interests from another through a legal transfer.

Article 4A

Part of the Uniform Commercial Code that governs the transfer of funds initiated through electronic means by banks and other financial institutions.

Check Clearing

The process by which banks validate and process checks transactions to transfer funds from the payer's to the payee's account.