After acquiring closely substitutable product brands, a firm can successfully raise prices on both of the brands without losing much of its total sales because
a. Customers are insensitive to price changes
b. None of these sales would be captured by its other brand
c. Some of these sales lost by one brand would be captured by the other
d. All of the above
c
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How will the purchase of $100 million of government securities by the Federal Reserve change bank reserves and total checking account deposits in the banking system as a whole? Assume that banks do not hold any excess reserves, that households and
firms do not change the amount of currency they hold, and that the required reserve ratio is 20 percent.
An increase in taxes will ________ consumption spending, and a decrease in transfer payments will ________ consumption spending
A) decrease; increase B) decrease; decrease C) increase; decrease D) increase; increase
Spending so much on arms that the economy of an adversary collapses is called market warfare
a. True b. False
For monetary policy to be effective in changing planned investment spending, _____
Fill in the blank(s) with the appropriate word(s).