A Theory Proposing That People Will Behave Based on Their

question 56

Multiple Choice

A theory proposing that people will behave based on their perceived likelihood that their effort will lead to a certain outcome and on how highly they value that outcome is known as the

• A)expectancy theory.
• B)ERG theory.
• C)path-goal theory.
• D)equity theory.
• E)hierarchy of needs theory.

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Definitions:

Aggregate Demand

The aggregate requirement for products and services in an economy at a specific general price point during a certain time frame.

Money Demand Curve

A graphical representation showing the relationship between the interest rate and the quantity of money that people want to hold.

Interest Rates

The cost of borrowing money or the return on investment for savings, typically expressed as a percentage of the principal.

Money Supply

The entirety of cash, coins, and account balances in checking and savings, representing the monetary assets accessible in an economy at a given time.