According to Real Business Cycle Theory,an Increase in Productivity ________

question 60

Multiple Choice

According to real business cycle theory,an increase in productivity ________ the demand for loanable funds,________ the demand for labour,and ________ the supply of labour.The real interest rate will ________.

• A)increase;increases;does not change;fall
• B)increase;increases;does not change;rise
• C)decrease;decreases;decreases;fall
• D)increases;increases;increases;rise
• E)increases;increases;increases;fall

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