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In the Two-Sided Search Model, the Expected Payoff to Searching

Question 27

Multiple Choice

In the two-sided search model, the expected payoff to searching for work


A) increases with the employment insurance benefit and decreases with the market wage.
B) decreases with the employment insurance benefit and increases with the market wage.
C) decreases with labour market tightness.
D) depends on the reservation wage.
E) increases with the employment insurance benefit and increases with the market wage.

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