Research on the Elaboration Likelihood Model (ELM)has Shown That

question 47

Multiple Choice

Research on the elaboration likelihood model (ELM) has shown that:

• A) celebrities are effective peripheral cues in a high-involvement situation
• B) celebrities are effective peripheral cues in a low-involvement situation
• C) the quality of message arguments is likely to be very important in a low-involvement situation
• D) peripheral cues are more important than detailed messages in high-involvement situations

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Definitions:

Crowding-Out Effect

The phenomenon where increased government spending leads to a reduction in private sector spending and investment due to higher interest rates or other factors.

Government Spending

The total amount of public expenditure by a government, including spending on defense, education, public infrastructure, and welfare programs.

Private Investment

The expenditure on capital goods by private sector firms or individuals in order to generate future income or profits, excluding government spending.

Crowding-In Effect

An increase in private sector spending stimulated by federal budget deficits financed by U.S. Treasury borrowing.