A Manager Who Is a Transactional Leader

question 45

Multiple Choice

A manager who is a transactional leader:

• A) uses reward and coercive powers.
• B) communicates vision to subordinates.
• C) intellectually stimulates subordinates.
• D) encourages subordinates to grow.
• E) can never also be a transformational leader.

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Definitions:

Consumption

The use of goods and services by households or individuals, typically referring to the final use that directly satisfies human needs or wants.

Disposable Income

Money freed up for households to allocate towards savings and spending after income tax removal.

Induced Consumption

The portion of consumer spending that rises when disposable income rises and falls when disposable income decreases.

Autonomous Consumption

The minimum level of spending that must occur, even if a household has no income.