Does an Egyptian consumer who buys a Kushari dish made in Egypt contribute more to Egyptian aggregate demand than does a consumer who purchases a McDonalds?
A) Yes, because the Kushari is made locally.
B) No, because McDonalds are made in Egypt under licence.
C) Yes, because McDonalds in an American company.
D) It is impossible to tell, without knowing where the various ingredients come from..

Question

Quizplus · Accepted Answer

It is impossible to determine the impact on aggregate demand without knowing the origin of the ingredients and the distribution of profits. Both purchases could contribute similarly if the McDonald's meal is produced locally and profits are reinvested in Egypt.

Does an Egyptian Consumer Who Buys a Kushari Dish Made