Suppose That When Your Wealth Increases from $100,000 to $200,000

question 11

Multiple Choice

Suppose that when your wealth increases from $100,000 to $200,000, your holdings of savings deposits increase from $10,000 to $12,000. Your wealth elasticity of demand for savings deposits then is

• A)less than 1 and savings deposits are a necessity asset.
• B)greater than 1 and savings deposits are a necessity asset.
• C)less than 1 and savings deposits are a luxury asset.
• D)greater than 1 and savings deposits are a luxury asset.

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Definitions:

Idealized Influence

A component of transformational leadership where leaders exemplify ethical conduct and inspire trust and admiration through their actions.

Intellectual Stimulation

The aspect of leadership that involves encouraging innovation, creativity, and critical thinking among followers.

Inspirational Motivation

A leadership quality that involves motivating and inspiring followers to achieve high levels of performance and commitment.

Individualized Consideration

Individualized consideration is a component of transformational leadership where leaders attend to the needs of each follower, acting as a mentor or coach, and respecting followers' individual needs.