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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