A budget line is defined as
A. the number of units of a good that can be purchased over a range of prices.
B. the combinations of a set of two goods that can be purchased, given current income and current prices for the goods.
C. how a household’s budget is allocated to various members of the family.
D. the maximum amount of money that can be spent.
E. the combinations of a set of two goods that the household prefers over other combinations.
Answer: B
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