In the IS-LM Model, the Impact of an Increase in Government

question 145

Multiple Choice

In the IS-LM model, the impact of an increase in government purchases in the goods market has ramifications in the money market, because the increase in income causes a(n) ______ in money ______.

• A) increase; supply
• B) increase; demand
• C) decrease; supply
• D) decrease; demand

Understand the concept of acquired needs theory and how it suggests that achievement, power, and affiliation needs are influenced by life experiences.

Comprehend the two-factor theory of Herzberg and its distinction between hygiene and satisfier factors in relation to job satisfaction and motivation.

Recognize the significance of power and affiliation in managerial roles and leadership as per McClelland and Herzberg's theories.

Understand the principles of ERG theory and how it modifies Maslow's hierarchy of needs in the context of frustration-regression.

---

Definitions:

Landowners

Individuals or entities that hold legal ownership of land or property.

Atlantic World

A term used to describe the interconnected web of social, economic, and political relationships across the Atlantic Ocean, primarily between Europe, Africa, and the Americas from the late 15th to the early 19th century.

Interdependent Web

Describes a complex system where all elements are interconnected and depend on each other for survival or function.

Transatlantic Trade

The exchange of goods, services, and capital between countries across the Atlantic Ocean, historically significant for its role in the colonial and post-colonial eras.