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Market Rate of Exchange also denotes:
Slope of PPC
Slope of Budget Line
Slope of Indifference Curve
None of these
- Option 1: Slope of PPC (Production Possibility Curve)
- The slope of the PPC represents the opportunity cost of one good in terms of another. It shows how many units of one good must be given up to produce more of another.
- Option 2: Slope of Budget Line
- The slope of the budget line represents the rate at which a consumer can substitute one good for another while staying within budget. It reflects the market rate of exchange between the two goods.
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- Option 3: Slope of Indifference Curve
- This slope represents the rate at which a consumer is willing to substitute one good for another while maintaining the same level of satisfaction. It is unrelated to market exchange rates.
- Option 4: None of these
- This would imply that none of the options correctly describe the market rate of exchange, which is not the case here.
By: Milap Bansal ProfileResourcesReport error
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