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Unformatted text preview: ual interest rates.
D) the extremely large increase in output during the period.
E) the extremely large increase in real interest rates during the period. 9) 10) The intertemporal substitution of leisure effect is used to justify the assumption that current labor
supply increases when the
A) current real wage and real investment rate decreases.
B) current real wage increases.
C) real interest rate decreases.
D) current real wage decreases.
E) real interest rate increases. 10) 11) A key determinant of investment is
A) the level of government spending.
B) the level of economic activity.
C) the potential for exports.
D) the real interest rate.
E) the expected rate of future total factor productivity. 11) 12) The slope of the demand for consumption goods is
A) the MRS.
B) the MPC.
C) equal to the wage rate.
D) equal to 1.
E) less than 1. 12) 2 13) When drawn against current income, the slope of the Cd (r) + Id (r) + G curve is equal to the
A) product of labour.
B) propensity to consume....
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- Spring '13