Which of the Following Will Generate a Multiplier Effect in the South

question 33

Multiple Choice

Which of the following will generate a multiplier effect in the South African economy?

• A)An increase in exports of luxury South African cars to China.
• B)An increase in investment in the SA wine industry.
• C)A reduction in consumer spending due to a sudden and substantial fall in SA stock markets that reduces household wealth.
• D)All of the above.

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Definitions:

Professional Labour Costs

Expenses associated with employing specialized professionals, such as engineers, lawyers, or doctors, including salaries, benefits, and training costs.

Manufacturing Businesses

Companies involved in the production of goods by transforming raw materials into finished products.

Net Realisable Value

The estimated selling price of an asset in the ordinary course of business, minus any costs associated with its sale or disposal.

Inventory

The stock of goods or materials held by a company, typically used in production or sold to customers.