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To simplify our consumption models, suppose U.S. consumers only purchase food and all other goods ...

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To simplify our consumption models, suppose U.S. consumers only purchase food and all other goods ...

To simplify our consumption models, suppose U.S. consumers only purchase food and all other goods where food is plotted along the horizontal axis of the indifference map. If the U.S. Congress passes an economic stimulus package that pays $300 to each person, how does this affect the budget line for each consumer?
A) Makes the budget line steeper
B) Makes the budget line flatter
C) Parallel outward (rightward) shift
D) Parallel inward (leftward) shift
E) none of the above

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Microeconomics

Edition: 8^th

Author: Pindyck

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Canih

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More solutions for this book are available here

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corie Author

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6 years ago

Thanks

rhockeygirl

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Good timing, thanks!

derya1234

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You make an excellent tutor!

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