Real Business Cycle Theorists Believe That the Intertemporal Substitution Effect

Multiple Choice

Real business cycle theorists believe that the intertemporal substitution effect _______.Many other economists believe that the intertemporal substitution effect _______.

A) is negligible; is large
B) occurs in the money market; occurs in the labour market
C) occurs in the labour market; occurs in the money market
D) occurs in foreign markets; occurs in domestic markets
E) is large; is negligible