Scenario 24-1

question 116

Multiple Choice

Scenario 24-1.Take the following information as given for a small,imaginary economy:

-Refer to Scenario 24-1.For this economy,an initial increase of $500 in net exports translates into a

• A) $2,000 increase in aggregate demand when the crowding-out effect is taken into account.
• B) $2,500 increase in aggregate demand when the crowding-out effect is taken into account.
• C) $2,000 increase in aggregate demand in the absence of the crowding-out effect.
• D) $2,500 increase in aggregate demand in the absence of the crowding-out effect.

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Definitions:

Facilitating Purchasing

The process of making it easier for customers to buy products or services, often through simplifying procedures or providing additional information.

Brand Attributes

Features that define and distinguish a brand in the market, influencing consumer perceptions and brand identity.

Protects From Competition

Strategies or practices implemented by a company to safeguard its market position and reduce the impact of rivals.

Strong Brand

A brand that has achieved high levels of recognition, loyalty, and trust among consumers, contributing to a competitive advantage in the marketplace.