Uncertainty of the future profit stream of projects

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An increase in the uncertainty of the future profit stream of projects will (assume no wealth effect or other change in the investment decision rule, or shift in the production function) A. cause the equilibrium interest rate to fall and real wage to rise. B. cause the equilibrium real output to rise and real wage to rise. C. cause the equilibrium interest rate to rise and real wage to rise. D. cause the equilibrium interest rate to fall and consumption to fall.

Reference no: EM13995756

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