Multiple Choice
If increased immigration raises the labour force, the neoclassical theory of distribution predicts that:
A) the real wage will rise, and the real rental price of capital will fall.
B) both the real wage and the real rental price of capital will fall.
C) both the real wage and the real rental price of capital will rise.
D) the real wage will fall, and the real rental price of capital will rise.
Correct Answer:
Verified
Correct Answer:
Verified
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