Multiple Choice
Identify the truthfulness of the following statements.
I. The substitution effect is unambiguous in its direction.
II) Direction of the income effect depends on whether the good is a normal or an inferior good.
A) Both I and II are true.
B) Both I and II are false.
C) I is true; II is false.
D) I is false; II is true.
Correct Answer:
Verified
Correct Answer:
Verified
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