An Income Effect

question 22

Multiple Choice

An income effect

• A) is measured as the change in prices over time.
• B) is not possible when people are unemployed.
• C) requires interest rates to remain constant.
• D) is the change in the quantity demand due to the fact that real income changes when prices change.

---

Definitions:

Buyer

An individual or entity that purchases goods or services from a seller in exchange for monetary payment or other consideration.

Grantor

The person or legal entity that creates a trust, conveys property, or grants a right.

Existing Mortgage

A mortgage that is currently in place on a property, affecting its sale, transfer, or refinancing.

Mortgagor

An individual or entity who borrows money to purchase property and pledges that property as collateral for the loan.