If money income increases, a consumer's budget line
A) becomes flatter.
B) becomes steeper.
C) shifts rightward and its slope does not change.
D) shifts leftward and its slope does not change.
Question 2In October 2008, Iceland's central bank increased its lending rate to 18 in an effort to prop up the country's frozen current and markets.
(
www.nytimes.com, October, 29, 2008)
As a result, there was ________, holding all else the same.
A) a movement upward along the supply curve for krona
B) a leftward shift in the supply curve for krona
C) a rightward shift in the supply curve for krona
D) an increase in the quantity supplied of krona