Consider two goods, X and Y, where X is measured on the horizontal axis and Y is measured on the vertical axis. All else constant, a decrease in the price of X will cause the consumer's budget constraint to:
A) rotate in along the X axis
B) rotate out along the X axis.
C) shift out parallel to the original budget constraint.
D) shift in parallel to the original budget constraint.
B
Economics
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A) works with some assumptions and biases. B) never confront tradeoffs. C) offer only the best evidence to support his or her theory. D) be the best candidate for the Nobel Prize in Economics.
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When the real quantity of money supplied equals the real quantity of money demanded, there is said to be
A) goods market equilibrium. B) asset market equilibrium. C) monetary neutrality. D) money illusion.
Economics