Assume That the RBA Is Expected to Respond to Any

question 49

Multiple Choice

Assume that the RBA is expected to respond to any event by keeping output constant (i.e., equal to its initial level) . An unexpected increase in taxes will cause:

• A) stock prices to fall.
• B) stock prices to rise.
• C) no change in stock prices.
• D) an ambiguous effect on stock prices.
• E) stock prices to rise only if goods prices rise.

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Definitions:

Internal Locus

The belief that one controls their own destiny and outcomes are the result of personal effort and actions.

Control Orientation

An approach or mindset focused on managing or directing the behavior and activities of individuals or groups, often to ensure conformity and achieve specific outcomes.

External Forces

Influences from outside an organization that can impact its operations, such as economic conditions, legal regulations, and social trends.

Rating Questionnaire

A survey method used to evaluate preferences, performance, or perceptions through a scored system.