Suppose inflation comes in the form of an across-the board increase in all prices by some percentage k.For a consumer with exogenous income operating in a 2-good world,this will cause the budget constraint to
a.
rotate inward
b.
rotate outward
c.
shift out in a parallel way
d.
shift inward in a parallel way
e.
none of the above

Question

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The Answer of Suppose inflation comes in the form of an across-the board increase in all prices by some percentage k.For a consumer with exogenous income operating in a 2-good world,this will cause the budget constraint to
a.
rotate inward
b.
rotate outward
c.
shift out in a parallel way
d.
shift inward in a parallel way
e.
none of the above

Suppose Inflation Comes in the Form of an Across-The Board