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Author Question: If the substitution effect is stronger than the income effect, an increase in real interest rates ... (Read 99 times)

123654777

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on: Jun 30, 2018
If the substitution effect is stronger than the income effect, an increase in real interest rates will lead to ________ in aggregate consumption and will lead to ________ in household saving.
 
  A) an increase; a decrease
  B) a decrease; a decrease
  C) a decrease; an increase
  D) an increase; an unclear change

Question 2

The marginal product of labor (MPL) is given by the ________.
 
  A) labor share of income + average output per unit of labor
  B) labor share of income - average output per unit of labor
  C) labor share of income  average output per unit of labor
  D) labor share of income  average output per unit of labor
  E) none of the above


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carlsona147

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Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

D


123654777

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

ryhom

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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