If We Observe That William's Budget Constraint Has Moved Inward

question 520

Multiple Choice

If we observe that William's budget constraint has moved inward, then we know for certain that

• A)his income must have decreased.
• B)he will be indifferent between goods X and Y.
• C)the price of one or both of the goods must have increased.
• D)his utility will decrease.

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Definitions:

President of the United States

The head of state and head of government of the United States, elected to a four-year term and serving as the executive leader of the federal government and commander-in-chief of the United States Armed Forces.

Board of Governors

The Board of Governors is the executive leadership of a central bank or other regulatory institution responsible for setting policies, overseeing operations, and guiding the organization’s objectives.

Board of Governors

The leading body of a central bank or other regulatory institution, responsible for overseeing its operations and making key decisions.

Federal Reserve

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