In the real intertemporal model with investment, there is ...

[abarnes]

In the real intertemporal model with investment, there is intertemporal substitution with respect to
 
  A) consumption and leisure.
  B) government spending.
  C) capital.
  D) current consumption.

Question 2

In the view of the new classical economists, an increase in the money stock will affect real output and employment only if the increase in the money stock
 
  a. was caused by an aggregate supply shock.
  b. is accompanied by an expansionary fiscal policy shift.
  c. was anticipated.
  d. was unanticipated.

[chreslie]

Answer to Question 1

A

Answer to Question 2

D