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The Two-Period Budget Line for Incomes Y1 and Y2 and Consumption

Question 24

Multiple Choice

The two-period budget line for incomes Y1 and Y2 and consumption C1 and C2 can be written as The two-period budget line for incomes Y<sub>1</sub> and Y<sub>2</sub> and consumption C<sub>1</sub> and C<sub>2</sub> can be written as ,if the interest rate were to fall the budget line would A) shift to the left in a parallel fashion B) shift to the right in a parallel fashion C) rotate counter-clockwise pivoting on Y<sub>1</sub>, Y<sub>2</sub> D) rotate clockwise pivoting on Y<sub>1</sub>, Y<sub>2</sub> ,if the interest rate were to fall the budget line would


A) shift to the left in a parallel fashion
B) shift to the right in a parallel fashion
C) rotate counter-clockwise pivoting on Y1, Y2
D) rotate clockwise pivoting on Y1, Y2

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