B a decrease in interest rates c an increase in

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Unformatted text preview: nt taxes. E) an increase in current income. 41) 42) The marginal rate of substitution of future leisure for future consumption must be equal to A) the future real wage. B) the relative price of current consumption in terms of future consumption. C) savings in the current period. D) the real interest rate. E) one. 42) 43) Investment tends to be more variable over the business cycle than A) consumer income. B) government spending. C) savings. D) aggregate output. E) real interest rates. 43) 44) An increase in the real interest rate A) reduces the labour supply. B) reduces savings C) shifts the current labour supply curve to the right. D) shifts the current labour supply curve to the left. E) reduces the real wage. 44) 7 45) An increase in total factor productivity causes A) labour supply to fall. B) the production function to shift up. C) the output supply curve to shift left. D) real wages to rise. E) real interest rates to rise. 45) 46) The marginal benefit from investment for a firm is equal...
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