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Mauritius, an Island Off the Coast of Africa, Competes with Other

Question 190

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Mauritius, an island off the coast of Africa, competes with other countries producing goods with low-skilled labor. In 2006, it was reported that its ʺ... factories have been exposed to ... competition from China, India and other Asian mass producers.ʺ As a result, ʺthe main export industry has seen a 30 per cent reduction in volume ...ʺ
The story describes


A) a decrease in induced expenditure.
B) a decrease in autonomous expenditure.
C) an unplanned decrease in inventories.
D) an increase in equilibrium expenditure.

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