Economists Refer to the Series of Induced Increases in Consumption

question 137

Multiple Choice

Economists refer to the series of induced increases in consumption spending that result from an initial increase in autonomous expenditures as the ________ effect.

• A)multiplier
• B)expenditure
• C)consumption
• D)aggregate demand
• E)Keynes

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Definitions:

Locally Responsive

The ability of a business to adapt its products, services, and operations to meet the specific demands and preferences of local markets.

Globally Integrated

Refers to entities such as economies, businesses, or systems that are interconnected and interdependent across the world.

Location Economies

The cost advantages obtained by a business due to its geographical position or the location of its resources and operations.

Meganational Strategy

A business strategy that seeks to operate and compete across multiple countries and regions, often by adapting products and practices to local conditions while maintaining overarching global standards.