Question

An overall increase in spending by manufacturing businesses is likely to have which effect?
A fewer exports
B greater employment
C lower consumer prices
D increased household saving

Answer 1

Answer:

B. greater employment

Explanation:

"Consumer spending" drives any country' economy. When consumer spending increases, the manufacturing businesses tries to meet the demand by increasing their spending. This means that the manufacturing companies need to hire more workers in order to continue its operations. So, this leads to a greater employment. When the output they produce creates a surplus, it results to many exports rather than fewer exports.  

So, this explains the answer.