The Two-Period Budget Line for Incomes Y₁ and Y₂ and Consumption

question 1

Multiple Choice

The two-period budget line for incomes Y₁ and Y₂ and consumption C₁ and C₂ can be written as ,if the interest rate were to rise the budget line would

• A) shift to the left in a parallel fashion
• B) shift to the right in a parallel fashion
• C) rotate counter-clockwise pivoting on Y₁, Y₂
• D) rotate clockwise pivoting on Y₁, Y₂

---

Definitions:

P-Wave

A type of seismic wave that compresses and expands the ground, being the fastest kind of seismic wave and the first to be recorded by seismographs during an earthquake.

Velocity

The speed of something in a given direction.

Density

A physical property that describes the mass of a substance per unit volume.

Reflection

In geology, the process by which seismic waves bounce off layers within Earth's interior, helping to understand sub-surface structures.