With a Temporary Change in Technology, A, We Expect Little

question 4

Multiple Choice

With a temporary change in technology, A, we expect little change in consumption because:

• A)the income effect on consumption is larger.
• B)the income effect on consumption is smaller.
• C)the intertemporal-substitution effect is larger.
• D)the intertemporal-substitution effect is smaller.

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Definitions:

Contract Sale

An agreement between a buyer and a seller where the payment for goods or services is extended over a period, often related to real estate transactions.

Unidentified Principal

A party in a transaction whose identity is not disclosed or known to the other parties involved.

Liable

Being legally responsible for something, especially in the context of debts or wrongful acts.

Transaction

A business deal or exchange between two or more parties, involving the transfer of goods, services, or funds.