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If We Observe That Jamie's Budget Constraint Has Moved Outward

Question 408

Multiple Choice

If we observe that Jamie's budget constraint has moved outward, then we know for certain that


A) her income must have increased.
B) she will be indifferent between goods X and Y.
C) the price of one or both of the goods must have decreased.
D) she can reach a higher indifference curve.

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