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If We Observe That Rae's Budget Constraint Has Shifted Inward,then

Question 120

Multiple Choice

If we observe that Rae's budget constraint has shifted inward,then we know for certain that


A) her income must have decreased.
B) she will be indifferent between goods X and Y.
C) the price of one or both of the goods must have increased.
D) her utility will decrease.

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