Assume That Investment Spending Depends Only on Output and No

question 39

Multiple Choice

Assume that investment spending depends only on output and no longer depends on the interest rate. Given this information, a decrease in government spending:

• A) will cause investment to increase.
• B) may cause investment to increase or to decrease.
• C) will have no effect on investment.
• D) will cause an increase in investment if the interest rate decreases.
• E) will cause investment to decrease.

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Definitions:

Behaviourally Anchored Rating Scale

A performance appraisal method that uses specific examples of behavior to rate employees, making the evaluation more objective and transparent.

Graphic Rating Scale

A graphic rating scale is a method used in performance appraisals where an employee's performance is rated on a scale, typically ranging from poor to excellent, across various categories.

Forced-Choice Method

A trait approach to performance rating that requires the rater to choose from statements designed to distinguish between successful and unsuccessful performance.

Developmental Purposes

Activities or strategies designed to improve individual skills, capabilities, and knowledge, often for professional growth or to enhance performance in current or future roles.