If People Believe That in the Future the Government Will

question 18

Multiple Choice

If people believe that in the future the government will have to resort to creating money to pay the interest on debt currently financed by the sale of bonds,they may

• A) try to hold less money now, pushing up the current demand for goods and services as well as the current price level.
• B) increase the demand for current government bonds, raising bond prices and reducing interest rates.
• C) reduce current consumption because they expect price levels to fall in the future as the government is forced to lower taxes.
• D) increase their current holdings of government bonds because they expect interest rates on government bonds to rise.
• E) do any of the above since government deficits have an unpredictable impact on the economy.

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Definitions:

Diversity Management

The strategic approach to recognizing, respecting, and valuing differences within the workforce to improve business outcomes.

Multicultural Workforce

Describes a diverse group of employees from various cultural backgrounds working in an organization.

Business Objectives

Specific, measurable goals that companies aim to achieve to ensure growth, profitability, and sustainability.

Diversity Management Initiative

Strategies and actions undertaken by organizations to create a diverse and inclusive work environment that respects and values differences among employees.