On a Graph Showing Investment Along the Vertical Axis and Income

question 135

Multiple Choice

On a graph showing investment along the vertical axis and income along the horizontal axis,

• A)the investment line slopes downward
• B)the investment line would shift upward if income increased
• C)the investment line would shift downward if the interest rate increased
• D)investment is the independent variable and income is the dependent variable
• E)the investment line would shift downward if income increased

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Definitions:

Mirror Image Rule

A principle in contract law stating that an offer must be accepted exactly with no modifications for a valid contract to be formed.

Offeror

The party making the offer.

Accepted

Acknowledged or agreed upon; typically refers to an agreement or proposal that has been agreed to by all parties involved.

Mailbox Rule

A rule providing that an acceptance of an offer takes effect at the time it is communicated via the mode expressly or impliedly authorized by the offeror, rather than at the time it is actually received by the offeror. If acceptance is to be by mail, for example, it becomes effective the moment it is placed in the mailbox.