If the Budget Line Rotates Inward and Becomes Steeper,there Is

question 125

Multiple Choice

If the budget line rotates inward and becomes steeper,there is a

• A) higher opportunity cost of the good measured on the x-axis.
• B) lower opportunity cost of the good measured on the x-axis.
• C) larger budget.
• D) higher price for the good measured on the y-axis.
• E) lower price for the good measured on the x-axis.

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Definitions:

Interest Payment

The amount paid by a borrower to a lender for the use of borrowed money, typically expressed as an annual percentage.

Semiannual Interest

Interest calculated and paid twice a year, often related to bonds or loans with fixed interest rates.

Straight-line Method

A technique for computing depreciation or amortization that evenly divides the asset's cost over its expected lifespan.

Bond Liability

An obligation or debt represented by bonds issued by a company, which it is required to repay at a specified time with interest.