Environmental Uncertainty Exists When Managers

question 85

Multiple Choice

Environmental uncertainty exists when managers

• A)attempt to simplify the general environment.
• B)attempt to stabilize the task environment.
• C)have difficulty predicting the impact of environmental factors.
• D)relax the constraints on product demand.
• E)behave in an unpredictable fashion.

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Definitions:

Aggregate Demand

The total demand for all goods and services within a particular economy at a given overall price level and in a given time period.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money they borrow from a lender, often expressed as an annual percentage rate (APR).

Multiplier

In macroeconomics, a factor that quantifies how an initial change in spending will affect total economic output.

Crowding-out Effects

The phenomenon where increased government spending leads to a reduction in private sector spending.