A change in a person's money income changes real income and therefore changes the slope of the person's budget line.

Name: A change in a person's money income changes real income and therefore changes the slope of the person's budget line.
Brand: Quizplus
Rating: 4.9 (43 reviews)

Question

Quizplus · Accepted Answer

A change in money income shifts the budget line parallelly without changing its slope, as the slope is determined by the relative prices of goods, not income.

A Change in a Person's Money Income Changes Real Income