Suppose that the business cycle in Canada is best described by RBC theory.An advance in technology increases productivity.The when- to- work decision depends on the real interest rate.The _______ the real interest rate, other things remaining the same, the _______ is the supply of labour today.RBC theorists believe the when- to- work effect is _______.
A) higher; smaller; small
B) lower; smaller; small
C) higher; larger; small
D) higher; larger; large
E) lower; larger; large
Correct Answer:
Verified
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