An Increase in Government Spending Will Have a Greater Impact

question 64

Multiple Choice

An increase in government spending will have a greater impact on net exports when

• A)the marginal propensity to save is smaller.
• B)the economy is closed.
• C)the sensitivity of investment to income is smaller.
• D)all of the above
• E) none of the above

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Definitions:

Hawthorn Study

A series of studies that examined how various factors in the workplace environment affected worker productivity, emphasizing the importance of social relations and worker satisfaction.

Human Cooperation

The process by which individuals work collectively towards a common goal, often involving complex interactions and social norms.

Positive Organizational Scholarship

Focuses on the study of positive outcomes, processes, and attributes of organizations and their members, emphasizing strengths, resilience, and the capacity for improvement.

Management Function

The organizational task of planning, organizing, leading, and controlling resources to achieve specific goals efficiently and effectively.