An Increase in Government Spending Can Result in Crowding-Out

question 46

Multiple Choice

An increase in government spending can result in crowding-out.Which of the following is a correct statement of the process?

• A)It leads to a decrease in savings,which leads to a decrease in investment spending.
• B)It leads to an increase in money supply,which pushes interest rates up and causes a decrease in investment spending.
• C)It causes bond prices to increase,which pushes interest rates up and leads to a decrease in investment spending.
• D)It increases the price level and the demand for money,which causes interest rates to increase and investment spending to decrease.
• E)It leads to an increase in GDP and in savings,which increases investment spending

Analyze the influence of performance-based reward systems on employee behavior.

Comprehend the role and challenges of various benefits programs in organizational contexts.

Grasp the principles of Management by Objectives (MBO) and its application in performance management.

Understand the importance of aligning rewards with employee performance and organizational effectiveness.

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Definitions:

Working Capital Ratio

A financial metric used to determine a company's ability to pay off its current liabilities with its current assets.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business.

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of a company.

Current Assets

Assets on a balance sheet that are expected to be converted into cash, sold, or consumed within a year.