In an Article Regarding Bangladesh's Economy, the Author Suggests That

question 452

Multiple Choice

In an article regarding Bangladesh's economy, the author suggests that the government ..."[g]ive double tax breaks on investment dollars. Give a tax break to R&D [research and development]. Give a tax break on donations to educational institutions." www.groundreport.com, March 24, 2008
The increase in investment is considered ________ and will generate a larger increase in ________.

• A) equilibrium spending; autonomous expenditure
• B) autonomous expenditure; induced expenditure
• C) induced expenditure; autonomous expenditure
• D) autonomous expenditure; multiplier spending.

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Definitions:

Bargaining Power

The ability of a party to exert influence or control over the terms and conditions of negotiations due to its strengths or advantages.

Substitutes

Alternatives or replacements for someone or something, typically used in the context of materials, products, or personnel.

BCG Matrix

A strategic planning tool that classifies business units or products into four categories based on market growth and market share.

Question Mark

A term used in the Boston Consulting Group (BCG) matrix to describe a product or business with low market share in a high-growth market, requiring investment to increase market share or divest.