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An Increase in Nonlabor Income While Holding the Wage Rate

Question 23

Multiple Choice

An increase in nonlabor income while holding the wage rate constant


A) rotates the budget line out along the consumption axis.
B) rotates the budget line out along the leisure axis.
C) rotates the budget line in along the leisure axis.
D) rotates the budget line in along the consumption axis.
E) shifts the budget line up while maintaining the same slope.

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