An In-Kind Gift Causes the Budget Line To

question 77

Multiple Choice

An in-kind gift causes the budget line to:

• A) shift to the right in a parallel fashion.
• B) shift to the left in a parallel fashion.
• C) rotate counterclockwise.
• D) None of the preceding statements is correct.

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Definitions:

Take Possession

Take possession refers to the act of assuming physical control or ownership of a piece of property or asset.

Collateral

Assets promised as security for the repayment of a loan, which can be seized by the lender if the borrower fails to repay according to the terms of the loan agreement.

Security Agreement

A legal document that provides a lender a security interest in a specified asset or property that is pledged as collateral.

Collateral

Collateral refers to assets that a borrower offers to a lender to secure a loan, which can be seized if the loan is not repaid.