Which Statement Best Illustrates How the Investment Accelerator Works for the Sleepwell

question 81

Multiple Choice

Which statement best illustrates how the investment accelerator works for the Sleepwell Hotel chain?

• A) an increase in government expenditures increases the interest rate so that the chain decides to build fewer new hotels
• B) an increase in government expenditures increases aggregate spending so that the chain finds it profitable to build more new hotels
• C) an increase in government expenditures increases the interest rate so that the demand for stocks and bonds issued by the chain rises
• D) an increase in government expenditures decreases the interest rate so that the chain decides to build more new hotels

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Definitions:

Human Capital

Represents the collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or society.

Differentiation Strategy

A business approach where a company provides unique, distinct products or services to stand out from competitors in the market.

Pay Structures

The framework within an organization that defines the pay rates for different roles, levels, or categories of jobs, often structured to ensure equity and fairness among employees.

Compensation Strategy

A plan or approach an organization uses to determine how to reward employees effectively and fairly based on job roles, market standards, and performance.