When a telemarketer calls you about a product, this is an example of
A) direct marketing.
B) indirect marketing.
C) searching for a good.
D) persuasive marketing.
Answer: A
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If the economy has an MPC of 0.8, by how much will a $50 billion increase in government purchases increase GDP? By how much will a $50 billion increase in taxes decrease GDP?
What will be an ideal response?
A one-year bond has an interest rate of 5% today. Investors expect that in one year, a one year bond will have an interest rate equal to 7%
According to the expectations theory of the term structure of interest rates, in equilibrium, a two-year bond today will have an interest rate equal to A) 3.0%. B) 5.0%. C) 5.5%. D) 6.0%.
According to Gordon, all of the following are important ingredients in the recent U.S. housing bubble EXCEPT
A) low interest rates. B) saving glut. C) financial innovation. D) trade deficit.
By the 1950s, the views of the Classical economists among American economists:
A. had been largely eclipsed by Keynesian views. B. had largely replaced Keynesian views. C. were just starting to be developed in response to the Great Depression. D. were about as widely held as Keynesian views.