An increase in lifetime wealth is likely to
A) increase current labour supply and increase current consumption demand.
B) increase current labour supply and decrease current consumption demand.
C) decrease current labour supply and increase current leisure.
D) decrease current labour supply and decrease current consumption demand.
E) decrease current labour supply and decrease current leisure.

Question

Quizplus · Accepted Answer

An increase in lifetime wealth typically allows individuals to afford more leisure, thus reducing their current labor supply, while increasing their consumption of leisure activities.

An Increase in Lifetime Wealth Is Likely to