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Suppose that there are two adjacent jurisdictions, Yeroc and Erehwon. Suppose that everything else is equal between the two jurisdictions except that Yeroc has some

Suppose that there are two adjacent jurisdictions, Yeroc and Erehwon. Suppose that everything else is equal between the two jurisdictions except that Yeroc has some net fiscal benefits (NFBs) over Erehwon. Based on Tiebout's theory, we can predict that: Question 20 options: There will be too much migration into Yeroc and equilibrium wages will fall in Yeroc and rise in Erehwon. There will be too much migration into Yeroc and equilibrium wages will increase in both jurisdictions. There will be too much migration into Yeroc and equilibrium wages will fall in both jurisdictions. There will be too much migration into Yeroc and equilibrium wages will increase in Yeroc and fall in Erehwon

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