When the tax rate on wages falls (so that the take-home wage or effective wage increases), the budget line

A. shifts out, parallel to the old budget line.
B. shifts in, parallel to the old budget line.
C. rotates out along the leisure axis.
D. rotates in along the leisure axis.
E. rotates out along the consumption axis.


Answer: E

Economics

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In the short run, an increase in the money stock growth rate

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If $1 U.S. is worth $30 Canadian, then a good that sells for $5,000 in the United States should sell for _____ Canadian in Canada

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Economics