An Advertisement for a Luxury Car Will Appeal to Consumers

question 39

Multiple Choice

An advertisement for a luxury car will appeal to consumers who are motivated by ________.

• A)safety and security
• B)basic physiological requirements
• C)achievement
• D)helping others
• E)self-actualization

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Definitions:

Foreign Prices

The cost or value of goods and services from a country different from the domestic market, often influenced by currency exchange rates.

Real Exchange Rate

The rate at which a person can trade the goods and services of one country for the goods and services of another, adjusted for inflation.

Purchasing-power Parity

a theory that in the long run, exchange rates ought to adjust so that an identical good in different countries will have the same price when expressed in a common currency.

Nominal Exchange Rate

The rate at which one country's currency can be exchanged for another country's currency without adjusting for inflation.