Consider the Budget Constraint Between "Spending Today" on the Horizontal

question 459

Multiple Choice

Consider the budget constraint between "spending today" on the horizontal axis and "spending a year from today" on the vertical axis. Suppose that you have $100 today and expect to receive $100 one year from today. Your money market account pays an annual interest rate of 25%, and you may borrow money at that interest rate. Suppose now that the interest rate decreases to 10%. What happens to the slope of your budget constraint relative to when the interest rate was 25%? The slope

• A)becomes steeper.
• B)becomes flatter.
• C)doesn't change because the budget constraint shifts in parallel to the original budget constraint.
• D)doesn't change because the budget constraint shifts out parallel to the original budget constraint.

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Definitions:

Walking

The act of moving at a regular pace by lifting and setting down each foot in turn, never having both feet off the ground at once.

Body Alignment

The optimal positioning of the body parts to maintain proper posture and reduce the risk of injury or pain.

Recumbent Position

A lying down position in which the individual is on their back, often used in medical and therapeutic settings.

Lateral Position

A body positioning technique where the patient lies on their side, often used in medical and therapeutic settings to improve comfort or access.