Multiple Choice
In response to a temporary increase in government spending, the representative consumer consumes
A) more and takes more leisure.
B) more and takes less leisure.
C) less and takes more leisure.
D) less and takes less leisure.
E) the same amount as leisure.
Correct Answer:

Verified
Correct Answer:
Verified
Q18: Investment will be more variable if<br>A) there
Q19: An increase in total factor productivity causes<br>A)
Q20: An increase in lifetime wealth is likely
Q21: An asymmetric information problem arises when<br>A) interest
Q22: The marginal benefit from investment for a
Q24: When future total factor productivity is expected
Q25: A decrease in credit market risk does
Q26: An increase in government spending<br>A) increases taxes
Q27: The marginal rate of substitution of future
Q28: The intertemporal substitution of leisure effect is