Multiple Choice
The income effect refers to:
A) changes in income because of changes in business investment.
B) changes in money or nominal income because of changes in wages.
C) a change in the quantity demanded of a good because of an implicit change in the buyer's income caused by a change in the price of a good or service.
D) a change in the quantity demanded of a good because of a change in the buyer's money income.
Correct Answer:
Verified
Correct Answer:
Verified
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