If the budget line rotates, then we know that
A) income has changed.
B) their has been a change in the consumer's tastes.
C) the price of one of the goods had changed.
D) the consumer was not maximizing their utility.
Answer: C
You might also like to view...
To maintain a pegged rate, a nation faces a trilemma and must also:
A) generate extra export revenues. B) watch carefully to ensure imports and exports are equal. C) adjust its interest rates and money supply to ensure the home interest rate is equal to the foreign interest rate to prevent pressure on the exchange rate. D) restrict foreign capital inflows and domestic capital outflows.
Which of the following would shift the long-run aggregate supply curve right?
a. both an increase in the capital stock and an increase in the price level b. an increase in the capital stock, but not an increase in the price level c. an increase in the money supply, but not an increase in the capital stock d. neither an increase in the money supply nor an increase in the capital stock