Multiple Choice
Suppose the banking industry were to fail,leaving the federal government (through its deposit guarantee programs) to pay for trillions of dollars in losses: they do so by imposing a tax of 50% on all individuals' wealth.What happens to current employment and the real wage rate?
A) Both employment and the real wage rate would increase.
B) Both employment and the real wage rate would decrease.
C) Employment would increase and the real wage would decrease.
D) Employment would decrease and the real wage would increase.
Correct Answer:
Verified
Correct Answer:
Verified
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