If we observe that Jamie’s budget constraint has moved outward, then we know for certain that
a. the price of one or both of the goods must have decreased.
b. she will be indifferent between goods X and Y.
c. she can reach a higher indifference curve.
d. her income must have increased.
c. she can reach a higher indifference curve.
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When gross investment is positive, net investment ________.
A. must be positive B. is always zero C. may be either positive or negative D. must be negative
The higher the dollar's exchange rate, the ________ the expected profit from holding dollars and so ________ dollars are supplied
A) larger; more B) larger; fewer C) smaller; more D) smaller; fewer
In the figure above, in which country do the highest-income 30 percent of households have the highest fraction of the nation's income?
A) Country A B) Country B C) Country C D) It is impossible to answer the question without more information.
If the Fed pursues a strategy of targeting an interest rate when fluctuations in money demand are prevalent
A) fluctuations of nonborrowed reserves will be small. B) fluctuations of nonborrowed reserves will be large. C) the Fed will probably quickly abandon this policy, as it did in the 1960s. D) the Fed will probably quickly abandon this policy, as it did in the 1950s.