If All Prices and Income Change by the Same Proportion

question 7

Multiple Choice

If all prices and income change by the same proportion:

• A) the budget line shifts out.
• B) the budget line shifts in.
• C) the budget line rotates outward.
• D) the budget line doesn't change.

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Definitions:

Missing Value

An absent data point or piece of information that was not recorded or is unknown in a dataset or equation.

Scheduled Payments

Regular, predetermined payments made over a period of time in relation to debts or loans.

Economically Equivalent

Situations, assets, or investments that have the same economic value or impact despite being in different forms or structures.

Replacement Payment

A replacement payment is a sum paid to compensate for a loss or replacing a missed payment or asset.