For a Number of Years, General Motors Used a Pricing

question 29

Essay

For a number of years, General Motors used a pricing strategy designed to maintain at least 40 percent of the American car market.Does this strategy suggest that GM was maximizing profits or pursuing an alternative strategy?

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Definitions:

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s to help recover from the Great Depression.

Great Depression

A severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States.

Economic Policy

Economic policy refers to the actions that governments take in the economic field covering taxation, government budgets, money supply, interest rates, and labor market regulations.

Monetary Policy

Actions by a central bank to control the money supply and interest rates in an economy.