Real Business Cycle Theorists Believe That the Intertemporal Substitution Effect

question 1

Multiple Choice

Real business cycle theorists believe that the intertemporal substitution effect ________. Many other economists believe that the intertemporal substitution effect ________.

• A)is large; is negligible
• B)is negligible; is large
• C)occurs in the money market; occurs in the labour market
• D)occurs in the labour market; occurs in the money market
• E)none of the above

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Definitions:

Logistics

Process of coordinating flow of goods, services, and information among members of the supply chain.

Supply Chain

Complete sequence of suppliers that contribute to creating a good or service and delivering it to business users and final consumers.

Physical Distribution

Actual movement of products from producer to consumers or business users.

Direct Distribution Channel

Marketing channel that moves goods directly from producer to ultimate user.