The most important automatic stabilizer is

In what way can the stock market affect the overall economy?

A) It's an important source of funds for corporations. B) It can affect consumer and business sentiment. C) It is an important factor affecting consumer wealth and thus consumer spending. D) All of the above

Use the following statements to answer this question. I. To maximize profit, a firm will advertise more when the advertising elasticity is larger. II. To maximize profit, a firm will advertise more when the price elasticity of demand is smaller

A) Both I and II are true. B) I is true, and II is false. C) I is false, and II is true. D) Both I and II are false.