Real business cycle economists claim that the intertemporal substitution effect
A. plays a small role in the labor market.
B. depends on the real interest rate.
C. plays a large role in the economy only during expansions.
D. has unpredictable effects on the economy.
Answer:B
Real business cycle economists claim that the intertemporal substitution effect
A. plays a small role in the labor market. B. depends on the real interest rate. C. plays a large role in the economy only during expansions. D. has unpredictable effects on the economy.