The LookGood BePopular (LGBP) Clothing Company embarked on a new advertising campaign in which a group of young beautiful people are having fun eating out at a restaurant wearing the company's clothes. Critics of advertising argue that this advertisement
a. causes demand for LGBP Clothing to be less elastic.
b. is more effective than other forms of advertisement because of its content.
c. will cause the market to be more competitive.
d. Both a and b are correct.
a
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Which of the following statements is correct?
I. A drop in the foreign exchange value of the dollar would decrease aggregate demand II. A decrease in the amount of money in circulation would increase aggregate demand A) I only B) II only C) Both I and II D) Neither I nor II
In the short run, to decrease the interest rate, the Federal Reserve ________ the quantity of money by ________ government securities
A) decreases; buying B) increases; selling C) decreases; selling D) increases; buying E) None of the above answers is correct because in the short run, the Federal Reserve cannot change the interest rate.
The effects on the economy of a prolonged decrease in investment are ________ if ________ occurs
A) more pronounced; consumers adjust permanent income downwards B) less pronounced; consumers do not adjust permanent income upwards C) more pronounced; consumers adjust permanent income upwards D) less pronounced; consumers adjust permanent income downwards
A proponent of supply-side economics would advocate
A. reducing income taxes on saving. B. reducing tax credits for research and development. C. eliminating the depreciation allowance. D. increasing the corporate income tax.