Using the Standard 45-Degree Line Diagram, How Does a Decrease

question 104

Multiple Choice

Using the standard 45-degree line diagram, how does a decrease in investment spending effect the expenditure schedule?

• A)It increases the slope of the expenditure schedule.
• B)It decreases the slope of the expenditure schedule.
• C)It shifts the expenditure schedule downward.
• D)It shifts the expenditure schedule upward.

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Definitions:

Global and Local Advantages

The benefits that companies gain by leveraging both global standardization to achieve efficiency and local adaptation to meet specific market needs.

Meganational Approach

A strategy by businesses to operate on a global scale, emphasizing uniformity in products and services across countries to exploit economies of scale.

Value Chain

A series of activities that a company performs to create value for its customers, from product design to post-sale service.

Location Economies

The cost advantages gained by a business due to its geographical position, often influencing its competitiveness.