In the Basic 45-Degree Line Model, What Is the Effect

question 66

Multiple Choice

In the basic 45-degree line model, what is the effect of an increase in the price level?

• A)There will be movement to the left on the expenditure line.
• B)There will be movement to the right on the expenditure line.
• C)The expenditure line will shift downward.
• D)The expenditure line will shift upward.

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Definitions:

Dissolution

The closure or termination of an entity's existence, such as a corporation or partnership.

UPA

Uniform Partnership Act, which is legislation adopted by various states in the USA to govern partnership formation and operation.

Causes

The reasons or motivations behind an event or action, explaining why it occurred.

Withdrawal

The act of removing oneself or one's assets from a participation or investment, or ceasing to be involved in an activity.