Which of the Following Explains Why Intertemporal Substitution Magnifies a Negative

question 55

Multiple Choice

Which of the following explains why intertemporal substitution magnifies a negative economic shock?

• A) When things go bad,the return to work and investing fall,and often people work less and invest less.
• B) When things go well,workers will tend to be less productive and invest less.
• C) When things go bad,people often work more and harder to maintain their return to work.
• D) When things go well,the return to work and investing rise,and often people work less and invest less.

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