chapter_9_long

B an increase in the real wage and a decrease in the

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Unformatted text preview: an increase in the real interest rate. D) a decrease in the real wage and a decrease in the real interest rate. E) a decrease in the real wage only. 49) 50) The marginal benefit from investment is A) is what one unit of investment adds to the current capital stock. B) is related to economic activity and the real interest rate. C) the ratio of investment to expected future profits. D) is what one unit of investment costs when funds are borrowed. E) is what one unit of investment in the current period adds to the present value of profits. 50) 8 51) The condition, MRSC,C = 1 + r, describes the representative consumer s 51) A) current consumption savings decision. B) current period work leisure decision. C) future period work leisure decision. D) investment decision. E) future consumption- savings decision. 52) The representative consumer s current labour supply curve slopes upward under the assumption that A) the substitution effect of an increase in the current labour supply outweighs the income effect. B) the substitution effect of an increase in the real wage outweighs the income effect. C) the substitution effect...
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This document was uploaded on 02/24/2014 for the course ECON 2152 at UWO.

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