Author Question: A fall in the long-run real interest rates leads to a ________. A) leftward shift of the labor ... (Read 107 times)

gbarreiro · **on:** Jun 30, 2018

A fall in the long-run real interest rates leads to a ________.

A) leftward shift of the labor supply curve B) leftward shift of the labor demand curve
C) rightward shift of the labor supply curve D) rightward shift of the labor demand curve

Question 2

Which of the following statements is true?

A) An increase in the nominal wage rate leads to a decrease in the real wage rate if the price level is stable.
B) In an economy which has a positive inflation rate, the real wage rate is always greater than the nominal wage rate.
C) An increase in the real interest rate always encourages higher savings.
D) An increase in the real interest rate might discourage savings.