Which of the Following Is True of a Trade-In Allowance

question 36

Multiple Choice

Which of the following is true of a trade-in allowance?

• A)It is a price reduction to stimulate sales of newly introduced products.
• B)It allows managers to reduce the effective price without reducing the list price.
• C)It forces managers to reduce the list price.
• D)It is used to save old products from being removed from the market.

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Definitions:

Restrictive Fiscal Policy

Fiscal measures implemented by a government to reduce its spending and/or increase taxes with the aim of slowing down an overheating economy.

Economic Plunge

A sudden and sharp decline in economic activity, often characterized by a decrease in GDP, investment, and employment.

Tax Rates

The percentages at which income, property, and sales are taxed by governments.

Money Supply

The total amount of monetary assets available in an economy at a specific time, including cash, bank deposits, and other liquid assets.