In the Classical Model,a Tax on Capital Will

Multiple Choice

In the classical model,a tax on capital will

A) increase the demand for labor,the real wage,and output.
B) increase the supply of labor,reduce real wages,and increase output.
C) decrease the demand for labor,the real wage,and output.
D) have no effect on the labor market.
E) increase both labor demand and supply,which will increase output.