If a Budget Line Rotates Inward and Becomes Steeper,then the

question 116

Multiple Choice

If a budget line rotates inward and becomes steeper,then the

• A) consumer's budget decreased.
• B) consumer's budget increased.
• C) price of one of the goods decreased.
• D) price of one of the goods increased.
• E) price of both of the goods must have decreased.

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Definitions:

Current Asset

An asset on a company's balance sheet that is expected to be converted into cash within one year or one business cycle, whichever is longer.

Statement of Cash Flows

A financial report that summarizes the amount of cash and cash equivalents entering and leaving a company.

Operating Activities

Activities directly related to the primary business operations, including revenue generation and expenses directly tied to the core business functions.

Indirect Method

A way of calculating cash flows from operating activities by adjusting net income for changes in non-cash accounts.