An increase in income (all else equal) will ALWAYS lead to a parallel shift of the budget line
Indicate whether the statement is true or false
True . Since prices are unchanged the relative prices of the goods stays the same and thus the slope of the budget line.
Economics
You might also like to view...
An example of the interaction term between two independent, continuous variables is
A) Yi = ?0 + ?1Xi + ?2Di + ?3(Xi × Di) + ui. B) Yi = ?0 + ?1X1i + ?2X2i + ui. C) Yi = ?0 + ?1D1i + ?2D2i + ?3 (D1i × D2i) + ui. D) Yi = ?0 + ?1X1i + ?2X2i + ?3(X1i × X2i) + ui.
Economics
With which choice are you more likely to avoid Bid-rigging cartels?
a. The winning bids are announced b. The winning bids are not announced c. Winning bids are announced right after the auction d. Both A&C
Economics