During a Recession, Tax Cuts Are Considered Less Effective Than

question 16

Multiple Choice

During a recession, tax cuts are considered less effective than government expenditure in increasing aggregate demand because _____.

• A) governments have complete information about consumer preferences
• B) the marginal propensity to save is very low in a recession
• C) consumers tend to spend less and save more during uncertain business conditions
• D) market-based economies are the best means of allocating resources

Understand the concept and implications of the bullwhip effect within supply chains.

Recognize the impact of lack of coordination on supply chain performance.

Identify how information distortion can exacerbate supply chain issues.

Understand strategies for minimizing the bullwhip effect through operational improvements and information sharing.

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Definitions:

Calculated

The result obtained from mathematical or statistical operations on data or values.

Test Statistic

A calculated value from sample data used in hypothesis testing to determine whether to reject the null hypothesis.

Calculated Value

A numeric value derived from mathematical operations on data or parameters.

Population Variances

A measure of the dispersion of all the values in a population, reflecting how much the individuals within the population differ from the population mean.