The income effect means that at a high enough wage rate labor supply curve has a
A) positive slope because an increase in the wage rate increases income.
B) positive slope because an increase in income increases the demand for leisure.
C) negative slope because an increase in income increases the demand for leisure.
D) negative slope because an increase in the wage rate increases hours worked to earn more income.
Question 2
A net borrower country must also be a debtor nation.
Indicate whether the statement is true or false
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