Suppose That GDP (Y) Is 5,000

question 59

Multiple Choice

Suppose that GDP (Y) is 5,000. Consumption is given by the equation C = 500 + 0.5(Y - T) . Investment (I) is given by the equation I = 2,000 - 100r, where r is the real interest rate in percent. Government spending (G) is 1,000 and taxes (T) is also 1,000. When a technological innovation changes the investment function to I = 3,000 - 100r:

• A)I rises by 1,000 and r rises by 10 percentage points.
• B)I rises by 1,000 and r is unchanged.
• C)I is unchanged and r rises by 10 percentage points.
• D)I is unchanged and r rises by 15 percentage points.

Understand the role and power of the Federal Trade Commission (FTC) in regulating advertising.

Grasp the key provisions of the Lanham Act and how they affect advertising and trademark protection.

Identify and analyze different types of misleading advertising and the legal frameworks designed to combat them.

Recognize the significance of the Central Hudson test in determining the constitutionality of restrictions on commercial speech.