How Does an Increase in the Budget Deficit Affect the Demand

question 37

Multiple Choice

How does an increase in the budget deficit affect the demand for dollars and the supply of dollars on the foreign exchange market?

• A)The demand for dollars falls,and the supply of dollars falls.
• B)The demand for dollars rises,and the supply of dollars rises.
• C)The demand for dollars rises,and the supply of dollars falls.
• D)The demand for dollars falls,and the supply of dollars rises.

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Definitions:

Herzberg

A psychologist known for the two-factor theory, which distinguishes between factors that cause job satisfaction and dissatisfaction.

Theory Y Assumptions

A management perspective that assumes employees are inherently motivated, enjoy their job duties, and will take on more responsibility if given the opportunity.

Management

The process of dealing with or controlling things or people, often within a business or organization.

Organizational Conditions

The various factors and circumstances within an organization that affect its operations and effectiveness.