Refer to Figure 8.3. Holding other variables constant, a decrease in households' wealth accompanied by an increase in the capital stock will definitely result in

A) an increase in the equilibrium quantity of labor.
B) a decrease in the equilibrium quantity of labor.
C) an increase in the equilibrium real wage.
D) a decrease in the equilibrium real wage.

A

Economics

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In a production possibilities frontier model, a point ________ the frontier is productively inefficient

A) outside B) at either intercept of C) inside D) along

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President Salinas of Mexico devised a strategy to restore Mexican growth by encouraging

A) large inflows of foreign capital. B) large increases in domestic savings. C) an expansion of import substitution industrialization policies. D) more government ownership of industrial firms.

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