Which of the Following Is the Best Example of the Use

question 15

Multiple Choice

Which of the following is the best example of the use of puffery in advertising?

• A)Central Bank advertises free checking with a minimum balance of $1,000.
• B)Michelin advertises a 50,000-mile guarantee for its tires.
• C)Godiva claims that it makes the finest chocolates in the world.
• D)Head & Shoulders shampoo advertises that it has been proven to be effective in preventing dandruff.
• E)Federal Express advertises guaranteed overnight delivery service.

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Definitions:

Economic Instability

A condition characterized by significant fluctuations in economic performance, manifesting in variables such as prices, demand, employment, and GDP.

Money Supply Growth

An increase in the total amount of money in circulation or in the economy within a specific period.

Monetarists

Economists who believe that variations in the money supply have major influences on national output in the short run and the price level over longer periods, and that the objectives of monetary policy are best met by targeting the growth rate of the money supply.

Monetary Rule

A guideline for the monetary policy stating that the central bank should aim at regulating the money supply to maintain stable prices, output, and employment.