The Less Permanent an Employee Perceives an Increase in Her

Multiple Choice

The less permanent an employee perceives an increase in her real wages to be

A) the smaller the income effect is and the more likely it is that the quantity of labour supplied will be increased.
B) the smaller the income effect is and the more likely it is that the quantity of labour supplied will be reduced.
C) the smaller the substitution effect is and the more likely it is that the quantity of labour supplied will be increased.
D) the smaller the substitution effect is and the more likely it is that the quantity of labour supplied will be reduced.