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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Definitions:

Black Slaves

Individuals of African descent who were forcibly taken into slavery and subjected to lifetime servitude, particularly prominent in the Americas during the transatlantic slave trade.

Colonial Militia

Military forces composed of ordinary citizens to protect their communities, colonies, or states, especially during the early history of the United States.

Racial Restrictions

Laws or policies that limit or dictate the rights and opportunities of individuals based on race.

Slave Codes

Laws established in the American colonies and later in the Southern states that defined the status of slaves and the rights of masters, severely restricting slaves' freedoms.