If Two Goods Are ________,Then an Increase in the Price

question 138

Multiple Choice

If two goods are ________,then an increase in the price of one leads to ________ in the quantity demanded of the other.

• A) complements; a decrease
• B) complements; no change
• C) substitutes; a decrease
• D) substitutes; no change
• E) normal; an increase

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Definitions:

Callable Bonds

Bonds that can be redeemed by the issuer before their maturity date at a predetermined price.

Redemption Provision

A clause in a bond or other fixed-income security that allows the issuer to repurchase and retire its bonds before the maturity date.

Unsecured Bonds

Bonds issued without collateral, relying solely on the issuer's creditworthiness.

Debentures

A type of long-term debt instrument used by corporations and governments to raise funds, not secured by physical assets or collateral.