ECON MICRO
5th Edition
ISBN: 9781337000536
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 13, Problem 3.7P
To determine
identify the factors that contribute to the changes in the interest rates across consumers
Concept Introduction:
Interest rate: the rate charged per period for borrowed money, deposited or lend expressed as a percentage of principal
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4. Draw a graph with Goods Per Day on the vertical axis and Leisure Hours Per Day
increasing from left to right on the horizontal axis. Show that a person who works can work
fewer hours and increase utility when the wage rate increases.
Give typing answer with explanation and conclusion
23. Suppose that there are two goods in an economy and that all prices double. At the sametime, the consumer’s income triples, then:(a) The budget line becomes steeper(b) The budget line becomes flatter(c) The budget line does not change(d) The slope of the budget line does not change, but it makes a parallel shift in towardsthe origin(e) The slope of the budget line does not change, but it makes a parallel shift out fromthe origin
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