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Which of the Following Statements About the Effects of Advertising

Question 21

Multiple Choice

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


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

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