Suppose That MPC = 0

question 29

Multiple Choice

Suppose that MPC = 0.7 and MPI = 0.2. According to the Keynesian multiplier, a decrease of $20 million in government purchases will

• A)increase real GDP by $40 million.
• B)decrease real GDP by $40 million.
• C)increase real GDP by $100 million.
• D)decrease real GDP by $100 million.
• E)have no impact on real GDP.

Identify the main reasons for failure in implementing top-down change and the importance of lower-level involvement.

Recognize the implications and limitations of bottom-up change in organizational innovation and adaptation.

Differentiate between the various strategies for implementing change, including force-coercion, rational persuasion, and shared power.

Evaluate the impact of internal and external forces on organizational change, including technological developments, economic conditions, social forces, and internal structural needs.

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Definitions:

Average Payments

The mean amount paid over a defined period payments.

Average Daily Float

The average amount of uncollected funds represented in checks or other negotiable instruments over a specified period.

Lockbox System

A service provided by banks to accelerate collection of payments by having those payments sent to a special post office box rather than to the company.

Treasury Bills

Represent short-term government securities issued at a discount from the par value and mature without interest payments.