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If a Family's Budget Constraint Shifts Because of an Increase

Question 15

Multiple Choice

If a family's budget constraint shifts because of an increase in non-labor income,then a member of the family who works outside of the home will


A) choose to decrease his or her hours of work.
B) choose to increase his or her hours of work.
C) not change his or her hours of work.
D) either increase or decrease his or her hours of work, depending on the size of the substitution effect.

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