An increase in the price of the good measured on the vertical axis of a budget line diagram will
a. cause a parallel outward shift of the budget line
b. leave the budget line unchanged
c. cause a parallel inward shift of the budget line
d. make the budget line flatter
e. make the budget line steeper
D
You might also like to view...
During the last decade, the price of shoes rose substantially yet people bought more pairs of new shoes each year. This experience suggests that the
A) supply curve of shoes shifted leftward. B) demand curve for shoes shifted leftward. C) supply curve of shoes shifted rightward. D) demand curve for shoes shifted rightward.
Zelzar has decided to end its policy of not trading with the rest of the world. When it ends its trade restrictions, it discovers that it is importing incense, exporting steel, and neither importing nor exporting rugs. Which groups in Zelzar are better off as a result of the new free-trade policy?
a. producers of incense and consumers of steel b. consumers of all three goods c. consumers of incense and producers of rugs d. producers of steel and consumers of incense
If M = the quantity of money, m the money multiplier, MB the Monetary Base, C = Currency, D = Deposits, R = Reserves, RR = required reserves, and ER = Excess reserves, then RR would equal:
A. MB. B. M/MB. C. D - C. D. R - ER.
When higher taxes discourage whatever activity is being taxed, that is called
A. a multiplier effect. B. tax discouragement. C. a negative incentive effect. D. tax abatement.