According to real business cycle theory, a fall in the real interest rate ________ the supply of labour and ________ employment.
A)decreases; decreases
B)increases; increases
C)decreases; increases
D)increases; decreases
E)does not change; does not change

Question

Quizplus · Accepted Answer

The Answer of According to real business cycle theory, a fall in the real interest rate ________ the supply of labour and ________ employment.
A)decreases; decreases
B)increases; increases
C)decreases; increases
D)increases; decreases
E)does not change; does not change

According to Real Business Cycle Theory, a Fall in the Real