Author Question: When the wage increases, the income effect on the household's choices leads to A) a decrease in ... (Read 82 times)

ARLKQ · **on:** Jun 30, 2018

When the wage increases, the income effect on the household's choices leads to

A) a decrease in consumption and leisure.
B) a decrease in consumption and an increase in leisure.
C) an increase in consumption and a decrease in leisure.
D) an increase in consumption and leisure.

Question 2

In the simple Keynesian model, total savings equals

a. total investment minus the budget deficit.
b. total planned and unplanned investment.
c. planned investment.
d. planned investment plus the budget deficit.
e. none of the above.