If the real interest rate is 2 percent and workers expect real wages to be 4 percent higher next year, according to real business cycle theory, workers will work
A) more this year and more next year.
B) more this year and less next year.
C) less this year and less next year.
D) less this year and more next year.

Question

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The Answer of If the real interest rate is 2 percent and workers expect real wages to be 4 percent higher next year, according to real business cycle theory, workers will work
A) more this year and more next year.
B) more this year and less next year.
C) less this year and less next year.
D) less this year and more next year.

If the Real Interest Rate Is 2 Percent and Workers