The Spending Allocation Pertains to the Long Run Because

question 120

Multiple Choice

The spending allocation pertains to the long run because

• A)it takes time for the government to adjust spending and taxes.
• B)of the way monetary policy works.
• C)exchange rates adjust very slowly to changing market conditions.
• D)it takes time for consumers and businesses to completely respond to changes in interest rates.
• E)it takes time for market interest rates to adjust to changing conditions.

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Definitions:

Return On Sales

A financial ratio that measures the percentage of profit made from sales after covering operating expenses.

Expectancy Theory

A motivational theory suggesting that an individual's motivation depends on their expectation of the outcome and the value they place on that outcome.

Valence

In psychology, the extent to which a person values the expected outcome of an action; in chemistry, the combining power of an element.

Expectancy

The anticipated outcome or occurrence of an event, often used in the context of probability or investment returns.