Imagine a Budget Line Between Two Goods, a and B

question 74

Multiple Choice

Imagine a budget line between two goods, A and B. If both prices triple while income doubles,

• A) the budget line stays the same
• B) the budget line rotates clockwise
• C) the budget line rotates counterclockwise
• D) the budget line shifts outward
• E) the budget line shifts toward the origin

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Definitions:

Confederacy

The confederation of 11 southern states that seceded from the United States in 1860-1861, leading to the American Civil War.

Major Robert Anderson

A Union Army officer during the American Civil War, best known for his defense of Fort Sumter at the outbreak of the war.

Fort Sumter

A sea fort in Charleston, South Carolina, known for two battles of the American Civil War, the first of which marked the war's beginning.

Civil War Began

Referring to the start of the American Civil War in 1861, a conflict between the Northern states (the Union) and the Southern states (the Confederacy) primarily over the issues of slavery and states' rights.