An Increase in Income Will Cause a Consumer's Budget Constraint

question 352

Multiple Choice

An increase in income will cause a consumer's budget constraint to

• A) shift outward, parallel to its initial position.
• B) shift inward, parallel to its initial position.
• C) pivot along the horizontal axis.
• D) pivot along the vertical axis.

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Definitions:

Fiduciary Duty

A duty to place a client’s interest above the professional’s own interests.

Debentures

A type of long-term security issued by a company, backed only by the general creditworthiness and reputation of the issuer.

Mortgage Bonds

Debt securities secured by a mortgage or collection of mortgages, giving holders a claim on the underlying property.

Directors' Meeting

A formal gathering of the board of directors of an organization to discuss and make decisions on company policy and management issues.