An increase in money income:
A. shifts the consumer's budget line to the right.
B. shifts the consumer's budget line to the left.
C. increases the slope of the budget line.
D. has no effect on the budget line.
Answer: A
Economics
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Macroeconomic forecasting is made easier due to the fact that
A) real GDP is variable about trend. B) the business cycle has a regular frequency. C) deviations from trend in real GDP are persistent. D) turning points are easy to predict.
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If tastes for a good increased and the price of a substitute good increased at the same time, as a result: a. prices would rise
b. prices would fall. c. larger quantities to be exchanged. d. Both a. and c. would occur.
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