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If an Increase in the Minimum Wage Increases Workers' Incomes

Question 6

Multiple Choice

If an increase in the minimum wage increases workers' incomes by $75 and reduces employers' incomes by $100, while workers' spend all of their income increase but employers reduce their spending by only eighty percent of their income reduction, aggregate spending


A) falls by $5.
B) falls by $25.
C) falls by $80.
D) remains unchanged.

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