-Refer to the graph above to answer this question.The shift in the budget line from BL₁ to BL₂ could be caused by which of the following? A)An increase in tax rates. B)A decrease in tax rates. C)A decrease in government spending. D)Technological change. E)A higher exchange rate.

Question

Quizplus · Accepted Answer

A decrease in tax rates increases disposable income, allowing consumers to afford more goods, shifting the budget line outward from BL1 to BL2.

-Refer to the Graph Above to Answer This Question