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When Drawn Against the Real Interest Rate, the Output Supply

Question 9

Multiple Choice

When drawn against the real interest rate, the output supply curve is upward sloping because labour supply is


A) increasing the real interest rate and labour demand is independent of the real interest rate.
B) decreasing the real interest rate and labour demand is independent of the real interest rate.
C) independent of the real interest rate and labour demand is increasing the real interest rate.
D) independent of the real interest rate and labour demand is decreasing the real interest rate.
E) increasing as the wage rate rises.

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