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Which of the Following Statements About the Effects of Advertising

Question 46

Multiple Choice

Which of the following statements about the effects of advertising on the business cycle is true?


A) Historically,when business cycles dip,advertising expenditures increase.
B) The increased advertising expenditures that occur during business cycle dips always produce an increase in personal consumption expenditures.
C) When business cycles are down,advertising may act as a stabilizing force.
D) The effect of advertising on business cycles is easily determined and monitored.
E) Advertising does not affect the business cycle.

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