The Traditional Keynesian Approach Concludes That an Increase in Government

question 175

Multiple Choice

The traditional Keynesian approach concludes that an increase in government spending

• A) generates a greater increase in investment spending.
• B) generates an equal increase in total spending because government spending makes up part of total spending.
• C) generates a greater increase in total spending because consumption spending increases as incomes increase.
• D) has no effect on total spending because consumers increase saving by an equal amount.

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Definitions:

Coordinating Mechanism

Strategies or systems used within organizations to align activities, tasks, and functions among different departments or teams.

Span of Control

The number of subordinates that a manager or supervisor can directly control.

Employee Involvement

The practice of including employees in the decision-making process and giving them a say in the operation and management of the company.

Narrow Span of Control

Narrow span of control refers to a management structure where a manager oversees a small number of subordinates, allowing for closer supervision.