Multiple Choice
Suppose that a severe shock that decreases the demand for loanable funds hits Canada.Which of the following can we expect to occur according to real business cycle theory?
A) People will work fewer hours.
B) The real wage rate will fall.
C) The demand for loanable funds will decrease.
D) The real interest rate will fall.
E) All of the above are true.
Correct Answer:
Verified
Correct Answer:
Verified
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