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    Exam 11: A Real Intertemporal Model with Investment
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    An Increase in the Real Interest Rate
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An Increase in the Real Interest Rate

Question 46

Question 46

Multiple Choice

An increase in the real interest rate


A) reduces savings
B) shifts the current labour supply curve to the right.
C) shifts the current labour supply curve to the left.
D) reduces the real wage.
E) reduces the labour supply.

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