An Increase in Domestic Demand Will Have Which of the Following

question 22

Multiple Choice

An increase in domestic demand will have which of the following effects in an open economy?

• A) A smaller effect on output than in a closed economy and no effect on the trade balance.
• B) A smaller effect on output than in a closed economy and a negative effect on the trade balance.
• C) A smaller effect on output than in a closed economy and a positive effect on the trade balance.
• D) A larger effect on output than in a closed economy and a negative effect on the trade balance.
• E) A larger effect on output than in a closed economy and a positive effect on the trade balance.

---

Definitions:

Realistic

Pertaining to the accurate representation of the real world.

Timebound

Characterized by a specific duration or deadline within which a task or project must be completed.

Management by Objectives

A management strategy focusing on defining specific objectives that employees need to achieve within a set timeframe, followed by feedback on their performance.

Performance Appraisal

A systematic evaluation of an employee's job performance and productivity.