We Will Generally Observe That the Less Open an Economy

question 5

Multiple Choice

We will generally observe that the less open an economy

• A)the larger the effect of fiscal policy on output and the larger the effect of fiscal policy on the trade position.
• B)the larger the effect of fiscal policy on output and the smaller the effect of fiscal policy on the trade position.
• C)the smaller the effect of fiscal policy on output and the larger the effect of fiscal policy on the trade position.
• D)the smaller the effect of fiscal policy on output and the smaller the effect of fiscal policy on the trade position.

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Definitions:

Classical View

is a management approach that emphasizes efficiency, increasing worker productivity, and a hierarchical organization structure.

CSR

Corporate Social Responsibility; refers to businesses making decisions and taking actions that are beneficial for society as well as the organization.

Profits

The financial gain that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes.

Accommodative Strategy

A corporate social responsibility strategy that accepts social responsibility and tries to satisfy society’s basic ethical expectations.