Under the rational model, the income expansion path varies depending on the source of the income.

Name: Under the rational model, the income expansion path varies depending on the source of the income.
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Quizplus · Accepted Answer

Since the solution to the utility maximization problem does not depend on the source of the income, the income expansion path (which traces the optimal consumption bundles at different levels of income) also does not depend on the source of the income.

Under the Rational Model, the Income Expansion Path Varies Depending