An increase in money income with constant price results in

A.

Outward shift in the budget line

B.

Inward parallel shift in the budget line

C.

Options A and C

D.

Budget line remain constant

Correct answer is A

If the income of consumer changes (upward or downward), the aggregate satisfaction of the consumer would also change (upward or downward) provided the prices remain the same. An increase in consumers' income will shift the budget line outwards while a decrease in consumers' income will shift the budget line inward.