The Crowding-Out Effect Suggests That

question 99

Multiple Choice

The crowding-out effect suggests that

• A) restrictive fiscal policy is an effective weapon against inflation.
• B) expansionary fiscal policy will be a highly effective weapon for fighting a recessionary downturn
• C) a budget surplus will cause the demand for loanable funds to decline, interest rates to rise, and aggregate demand to decrease.
• D) budget deficits that lead to higher interest rates reduce private investment spending.

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Unions

Organizations that represent the collective interests of workers in negotiations with employers over wages, working conditions, and benefits.

Human Relations School

A management approach emphasizing social relations at work, employee well-being, and motivation.

Authoritarian Leadership

A leadership style characterized by individual control over all decisions and little input from group members.

Job Satisfaction

The extent to which individuals feel fulfilled, content, and happy with their jobs, influencing their motivation, performance, and retention.