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Author Question: When the wage increases, the substitution effect in the household's choices leads to A) a ... (Read 97 times)

humphriesbr@me.com

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on: Jun 30, 2018
When the wage increases, the substitution effect in 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

According to Keynes, the consumption-income relationship is shown as C = a + bYD. Therefore, the saving-income relationship is
 
  a. S = a + (1  b)YD.
  b. S =  a + (1  b)YD.
  c. S = a + (1  b)/YD.
  d. S =  a + (1 b)/YD.


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adammoses97

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

C

Answer to Question 2

B


humphriesbr@me.com

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Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

mochi09

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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