The Ricardo-Barro Effect Is Based on the Idea That ________

question 45

Multiple Choice

The Ricardo-Barro effect is based on the idea that ________ when the government has a budget deficit.

• A) people decrease their private saving
• B) people increase their private saving
• C) investment demand increases because expected future profits increase
• D) investment demand decreases because of the higher real interest rate
• E) people immediately increase their tax payments

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Definitions:

Leader-Member Exchanges

involves the relationship dynamics between leaders and their followers, focusing on how these interactions affect organizational outcomes.

Team Performance

The effectiveness and efficiency of a team in accomplishing its goals, measured by the quality and quantity of its outputs.

Empowers

The act of giving someone the authority or power to do something, thereby increasing their confidence and ability to make decisions.

Trait Theory

A theory of leadership that suggests leaders possess certain inherent qualities or characteristics that make them effective.