If a household's income is cut in half, its budget constraint will
A. shift out parallel to the old one.
B. shift in parallel to the old one.
C. pivot at the Y-intercept.
D. be unaffected.
Answer: B
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In the balance of payments, financial transactions include all
a. transactions in which money changes hands. b. flows of financial investments between nations. c. net deficit items. d. net surplus items.
Which of the following is a positive statement?
A) An unemployment rate of 5.8 percent is too high. B) The unemployment rate is 5.8 percent. C) The unemployment rate should be below 5.8 percent. D) The unemployment rate should never be above 5.8 percent.
If a person is going to borrow $360,000 for a home and pay it off with a constant mortgage payment every month for 30 years, what do you know about their mortgage payment (if the interest rate is positive)?
A. The payment is more than $1,000 per month. B. The payment is less than $1,000 per month. C. The payment is exactly than $1,000 per month. D. Nothing.
If households save $0.20 of each additional dollar of increased income and spend the rest, the expenditure multiplier will be
A) 1.25. B) 2. C) 5. D) 8.