In the above figure, if the price of milk rises, the budget line
A) rotates outward and the slope becomes steeper.
B) shifts inward and its slope does not change.
C) rotates inward and the slope becomes steeper.
D) rotates inward and the slope becomes more shallow.
C
Economics
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At the equilibrium level of income, the value of consumption is equal to
A) (consumption - savings). B) (income - investment). C) (savings + investment). D) (income + investment).
Economics
One effect of a stronger dollar is
A) an increase in U.S. exports and a reduction in U.S. imports. B) a reduction in U.S. exports and an increase in U.S. imports. C) an increase in net exports. D) an increase in both imports and exports. The effect on net exports is uncertain.
Economics