Select the appropriate word:
'The government introduced tax incentives to ______ domestic manufacturing and innovation.'
Answer and explanation
Correct answer: A. stimulate
- Step 1: 'Stimulate' means to encourage, spur, or increase activity or growth in an economic sector.
- Step 2: Tax incentives are designed specifically to boost or stimulate innovation.
Answer
stimulate.
Why not the others: 'deter' means to discourage or prevent; 'suppress' means to forcibly put an end to; 'terminate' means to bring to a permanent halt.
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