If the prices of both goods and income increase by the same percentage

If the prices of both goods and income increase by the same percentage, what will happen to the budget line?

A) The budget line rotates inward from the intercept on the axis of the good that did not change in price.
B) The budget line rotates outward from the intercept on the axis of the good that did not change in price.
C) The budget line shifts outward without a change in slope.
D) Nothing.

 

ANSWER

D

 

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