Which of the Following Best Explains Why Cities Want Business

question 59

Multiple Choice

Which of the following best explains why cities want business conventions, political conventions, and major sports events to be held in their town?

• A) Because these activities will boost tourism and attract people who will create a demand for the city's goods and services.
• B) Because this initial change in spending generated by these activities begins the multiplier process so that the final increase in the city's real GDP demanded is much larger than the initial spending on these activities alone would cause.
• C) Because federal and state spending in these cities will increase, thus initiating the multiplier process.
• D) Because these activities create jobs and boost spending, which in turn increases the city's tax revenues from income and sales.

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