In a budget line, a decrease in income is represented graphically by:
A. a rightward parallel shift of the budget line.
B. a change in the slope of an indifference curve.
C. a leftward parallel shift of the budget line.
D. a change in the slope of the budget line.
Answer: C
You might also like to view...
All of the following are barriers to international investment EXCEPT
A) adverse selection. B) incomplete information. C) moral hazard. D) symmetric information.
When a firm decides to retain its earnings instead of paying dividends, the stockholders necessarily suffer
a. True b. False Indicate whether the statement is true or false
Refer to Figure 13-2. Ceteris paribus, an increase in the expected future price level would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.
Describe and explain the relationship between expected inflation rates in two countries and their interest rate differential according to the PPP theory
What will be an ideal response?