Which of the following is not correct?
a. An increase in income shifts a consumer's budget constraint outward.
b. An increase in the price of good X causes a consumer's budget constraint to rotate inward along the X axis.
c. A decrease in the price of good Y causes a consumer's budget constraint to rotate outward along the Y axis.
d. Changes in income affect the slope of the budget constraint as well as its location on a graph.
d
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________ is the additional satisfaction a person receives from consuming an extra unit of a good
A) Total utility B) Marginal utility C) Diminishing marginal utility D) Preferences
Holding other things constant, a decrease in the inflation rate in the US compared to the Canadian economy may cause the demand for the US dollar to _____________ and the supply to __________
a. Increase; decrease b. Increase, increase c. Decrease; Increase d. Decrease; Decrease
An economy's PPC illustrates the extent to which the economy consumes what it produces
a. True b. False Indicate whether the statement is true or false
Only two exchange rate regimes can be considered hard pegs. These are:
A. flexible exchange rates and currency boards. B. dollarization and managed floating. C. currency boards and dollarization. D. the gold standard and inflation targeting.