The Tendency to Reduce Current Consumption and Increase Future Consumption

question 63

Multiple Choice

The tendency to reduce current consumption and increase future consumption as the real interest rate increases is called

• A)the substitution effect of the real interest rate on saving.
• B)the income effect of the real interest rate on saving.
• C)the net effect of the real interest rate on saving.
• D)the substitution effect of the real interest rate on investment.

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Definitions:

Organizational Culture

is a system of shared beliefs, values, norms, and practices that influences how members of an organization interact with each other and with stakeholders outside the organization.

James Heskett

An academic known for his contributions to business management, particularly in the areas of organizational culture, service management, and customer satisfaction.

John Kotter

A professor of leadership at Harvard Business School best known for his work on change management and leadership.

Anticipatory Socialization

The process through which individuals learn and adapt to the norms and expectations of a culture or group before they formally enter it.