Considering the Three Basic Small Business Strategies Identified in Your

question 37

Essay

Considering the three basic small business strategies identified in your textbook, which one would work best for Cherry Lane? Why might that strategy be successful?

---

Definitions:

Government Spending

The total amount of public sector expenditure on goods and services, including investments and transfers, which influences economic activity.

Interest Rates

The cost of borrowing money or the reward for saving, expressed as a percentage of the money borrowed or saved. It influences consumer spending, inflation, and overall economic activity.

Government Purchases

Expenditures by the government on goods and services that are included in the calculation of the country's GDP.

Aggregate Demand

The total demand for all goods and services within an economy at various price levels, in a given period.