In response to a tax cut, the consumption of a consumer who is borrowing-constrained , whereas the consumption of a forward-looking, unconstrained consumer acting in accord with Ricardian equivalence .

Mbo works by objectives moving through the organization; that is, top managers set general organizational objectives, which are translated into divisional objectives, which are translated into departmental objectives. the hierarchy ends in individual objectives set by each employee. this is an example of mbo working as objectives through the organization.