Which of the following best describes the impact of immigration on complementary resources?
A) The lower wage rate resulting from immigration reduces production costs, creating a business-income effect that increases the demand for complementary resources.
B) The lower wage rate resulting from immigration reduces production costs, creating an output effect that decreases the demand for complementary resources.
C) The higher wage rate resulting from immigration increases production costs, creating an output effect that increases the demand for complementary resources.
D) The lower wage rate resulting from immigration reduces production costs, creating an output effect that increases the demand for complementary resources.
Correct Answer:
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