An Increase in the Sensitivity of Private Spending (Consumption,investment,and Net

question 160

Multiple Choice

An increase in the sensitivity of private spending (consumption,investment,and net exports) to changes in the interest rate ________ the government purchases multiplier.

• A)will decrease
• B)will increase
• C)will not change
• D)may increase or may decrease

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Definitions:

Power Distance

The extent to which less powerful members of institutions and organizations accept and expect that power is distributed unequally.

Goals

Targets or benchmarks that individuals or organizations aim to achieve, guiding their efforts and actions toward specific outcomes.

Superiors

Superiors refer to individuals or authorities higher in rank or position within an organization, often responsible for overseeing and managing subordinates.

Good Performance

Refers to achieving or exceeding the set standards of tasks, duties, or goals efficiently and effectively.