If Dividend Income Increases,the Following Does Not Happen

question 89

Multiple Choice

If dividend income increases,the following does not happen

• A) the consumer chooses to consume more leisure.
• B) the consumer chooses to consume more consumption goods.
• C) the budget constraint shifts to the right.
• D) the substitution effect exceeds the income effect.

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Definitions:

Point A

Typically used in graphical analysis to denote a specific point or position within a chart or graph.

Economic Capacity

The maximum output that an economy can produce without big increases in inflation, utilizing fully its resources.

Investment Goods

Long-term assets purchased for the purpose of generating income, including machinery, buildings, and equipment.

Economic Growth

The uptick in the true economic value of goods and services made by an economy, accounting for inflation, as time progresses.