What Would Happen If the Price of Novels Increased and Novels

question 66

Multiple Choice

What would happen if the price of novels increased and novels are measured on the horizontal axis of a budget line diagram?

• A)The budget line would shift to the right.
• B)The budget line would rotate outward along the horizontal axis.
• C)The budget line would rotate inward along the horizontal axis.
• D)The budget line would rotate outward along the vertical axis.
• E)The budget line would rotate inward along the vertical axis.

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Definitions:

Federal Reserve

The central banking system of the United States, responsible for setting monetary policy, regulating banks, and ensuring financial stability.

Savings And Loan Crisis

A financial crisis in the 1980s and 1990s involving the insolvency of numerous savings and loan associations in the United States.

Credit Cardholder

An individual or entity that has been authorized to use a credit card and is responsible for repaying the amount borrowed plus any interest accrued.

Credit Availability

The level of accessibility individuals or businesses have to obtaining loans or credit from financial institutions.