Exhibit 6-30 Consider Exhibit 6-30

question 57

Multiple Choice

Exhibit 6-30 Consider Exhibit 6-30.Assume that you initially have $600 to spend on books and compact disks.What happens if the amount you have to spend increases to $800?

• A)The budget line shifts inward along the horizontal axis.
• B)The budget line shifts inward along the vertical axis.
• C)The budget line shifts outward along the horizontal axis and the vertical axis.
• D)The budget line shifts outward along the vertical axis.
• E)The budget line shifts outward along the horizontal axis.

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Definitions:

Cash Account

An accounting ledger that tracks the money a company spends (cash out) and receives (cash in).

Cash Account

An account that tracks the amount of cash available at any given point in time; it reflects all cash inflows and outflows.

Raw Materials Purchases

This refers to the total cost incurred by a company to buy the raw materials needed for production.

Gallons

This term refers to a unit of volume measurement, commonly used in the United States to measure liquids.