The economic policies implemented during the recession were designed to _______ investment in struggling industries. Officials hoped that government incentives would encourage private capital to flow into sectors that had been neglected.
Which choice completes the text with the most logical and precise word or phrase?
discourage
analyze
stimulate
document
Correct Answer: C
Choice C is the best answer. The passage describes policies meant to "encourage private capital to flow" into neglected areas. "Stimulate" means to encourage or provoke activity, precisely matching this goal of increased investment.
Choice A is incorrect because "discourage" is the opposite of encouraging investment. Choice B is incorrect because "analyze" means to study, not to promote action. Choice D is incorrect because "document" means to record, not to encourage.