An Increase in Incomes Will Lead to a Decrease in the Demand

question 170

True/False

An increase in incomes will lead to a decrease in the demand for an inferior product.

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Definitions:

Required Return

The smallest annual return rate required to attract individual or corporate investors to a particular security or venture.

Expected Dividend

The projected payment to shareholders, usually expressed as an annual amount.

Required Rate

The least yearly percentage yield that appeals to people or businesses to channel funds into a certain security or project.

Dividend Growth

The annual rate at which a company's dividend payments to shareholders increase.