Change in the Budget Line
Trending Questions
Q.
What is the full form of MPC?
Q. What happens to the budget line when consumer income increases but the price of goods remains unchanged?
- Parallel upwards shift
- Parallel downwards shift
- Shift only on the x axis
- Shift only on the y-axis
Q. What do the points below the budget line represent?
- Bundle that cost less than consumer income
- Bundle that cost equal to consumer income
- Income which is less than the consumer bundle
- None of the above
Q. Calculate MPC and MPS from the following schedule:
| Income (Y) | 100 | 200 | 300 | 400 | 500 |
| Consumption (C) | 85 | 160 | 235 | 310 | 400 |
Q. Briefly explain the money flow and the real flow of income.
