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

Question

Quizplus · Accepted Answer

An increase in lifetime wealth typically leads to a decrease in current labor supply because individuals can afford to work less and enjoy more leisure time, while also increasing their current consumption due to the higher wealth.

An Increase in Lifetime Wealth Is Likely to