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vellojo vellojo
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7 years ago
Today, the real wage rate is $10 an hour and the real interest rate is 5 percent a year. People expect the real wage rate to be $10.05 an hour in one year. The $10 an hour earned now will be worth ________ a year from now. The intertemporal substitution effect tells us that people will want to work ________.
A) $10.50 an hour; more now and less next year
B) $15.00 an hour; the same amount now and next year
C) $10.50 an hour; more next year and less now
D) $10.05 an hour; more both now and next year
Textbook 
Foundations of Macroeconomics

Foundations of Macroeconomics


Edition: 8th
Authors:
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Studying economics @ Edinburgh U
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yaderayadera
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vellojo Author
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7 years ago
I went through a flood of websites until I signed up here lol Glad I did
Studying economics @ Edinburgh U
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