Critics of the real business cycle model argue that
A. investment spending is strongly related to the real interest rate.
B. labor supply is only weakly related to the real interest rate.
C. investment spending is only weakly related to the real interest rate.
D. labor supply is very strongly related to the real interest rate.
Answer:B
Critics of the real business cycle model argue that
A. investment spending is strongly related to the real interest rate. B. labor supply is only weakly related to the real interest rate. C. investment spending is only weakly related to the real interest rate. D. labor supply is very strongly related to the real interest rate.