If we observe that Jamie’s budget constraint has moved outward, then we know for certain that
a. the price of one or both of the goods must have decreased.
b. she will be indifferent between goods X and Y.
c. she can reach a higher indifference curve.
d. her income must have increased.
c. she can reach a higher indifference curve.
Economics
You might also like to view...
If the price level rises, the quantity of
A) nominal money people demand increases. B) real money people demand increases. C) nominal money people demand decreases. D) real money people demand decreases.
Economics
If participants in securities markets believe that an announced decrease in the money supply will reduce the rate of inflation, the likely result will be
A) higher real interest rates. B) higher nominal interest rates. C) lower real interest rates. D) lower nominal interest rates.
Economics