In the Equation $I _ { t } / \tilde { Y } _ { t } = \bar { a } _ { i } - \bar { b } \left( R _ { t } - \bar { r } \right)$

question 47

Multiple Choice

In the equation $I _ { t } / \tilde { Y } _ { t } = \bar { a } _ { i } - \bar { b } \left( R _ { t } - \bar { r } \right)$ , if $\bar { b }$
Is close to zero, investment:

• A) is not very sensitive to real interest rate changes
• B) is very sensitive to changes in the marginal product of capital
• C) is very sensitive to real interest rate changes
• D) is sensitive to tax rate changes
• E) does not depend upon the real interest rate

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Definitions:

Job Design

The process of organizing tasks, duties, and responsibilities into a productive work unit to accomplish organizational goals.

Organizational Climate

The general atmosphere, culture, and morale felt by employees and the prevailing attitudes towards work and the company.

Synergistic Effect

The phenomenon where the combined effect of collaborating elements is greater than the sum of their individual effects.

Creativity

The ability to generate innovative ideas and solutions by thinking outside the conventional boundaries.