If a Consumer Is Initially in Equilibrium, an Increase in Money

question 153

Multiple Choice

If a consumer is initially in equilibrium, an increase in money income will

• A)move the consumer to a new equilibrium on a lower indifference curve.
• B)move the consumer to a new equilibrium on a higher indifference curve.
• C)make the slope of the consumer's indifference curves steeper.
• D)have no effect on the equilibrium position.

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Definitions:

Test Statistic

A quantity derived from sample data used to make a decision about a hypothesis test.

Z

'Z' often represents the Z-score in statistics, which is the number of standard deviations a data point is from the mean of the data set.

Square

A polygon with four equal sides and four right angles.

Relationship

How two or more notions, entities, or persons are associated, or the status of association.