If Net Exports Fall $40 Billion and the MPC Is

question 295

Multiple Choice

If net exports fall $40 billion and the MPC is 8/11 and there is a multiplier effect, but no crowding out and no investment accelerator, then

• A)aggregate demand falls by 3 x $40 billion.
• B)aggregate demand falls by 11/3 x $40 billion.
• C)aggregate demand falls by 11/8 x $40 billion.
• D)None of the above is correct.

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Definitions:

LMX Relationships

Stands for Leader-Member Exchange, a concept explaining how leaders develop disparate relationships with members of their team, leading to different experiences and outcomes for team members.

Workgroup

A group of individuals who work together towards a common goal, typically within the same department or project team.

LMX

Leader-Member Exchange theory, a concept that focuses on the two-way (dyadic) relationship between leaders and members which can affect the performance and satisfaction of both.

Cultures

The collective patterns of values, beliefs, behaviors, and artifacts that characterize a group of people or an organization.