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A Decline in Income Is Shown on the Budget Line

Question 23

Multiple Choice

A decline in income is shown on the budget line by:


A) a rotation of the budget line such that its horizontal intercept is larger than its vertical intercept.
B) a parallel shift in the budget constraint toward the origin.
C) a rotation in the budget line so it intersects the vertical axis closer to the origin.
D) a change in the relative price ratio.

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