When Ft McClellan closed down, the decline of production at the Fort fell by 500M. The economic impact on the area was even larger. Why was it larger?
a. people lost jobs at the fort, resulting in a loss of wages of 400M (Assume the MPC was 4/5)
b. the military produced fewer high-tech goods in Calhoun County
c. businesses located near to the Fort suffered losses in sales
d. the positive impact on the environment of closing the Fort brought in many more tourism dollar than the loss of military jobs
Ans: c. businesses located near to the Fort suffered losses in sales
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