Which of the Following Statements About Advertising Is Most Accurate

question 174

Multiple Choice

Which of the following statements about advertising is most accurate?

• A) Advertising can communicate specific product benefits to prospective buyers.
• B) Advertising has limited control as to when and where an advertisement will be used.
• C) A key advantage of advertising is its ability to use customized interactions.
• D) Advertising can be a very effective "attention getter" especially for new products, but has little impact for repeat buys.
• E) Advertising is one of the least costly forms of promotion because it reaches a mass market.

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Definitions:

National Saving

The total amount of savings in a country, calculated as the sum of private savings by households and businesses, plus public savings by the government, minus any foreign borrowing.

Open-Economy Macroeconomic

A branch of macroeconomics that studies economies in which international trade and financial transactions play a significant role.

Loanable Funds

The funds available for borrowing in the financial markets, involving the lending and borrowing between savers and borrowers, which determines the equilibrium interest rate.

Domestic Investment

The total amount of resources invested in the production of goods and services within a country’s borders.