If the Fed wants to fight inflation, it will ________ the federal funds rate in order to ________
A) raise; decrease aggregate supply
B) raise; increase aggregate supply
C) raise; decrease aggregate demand
D) lower; decrease aggregate demand
E) lower; increase aggregate supply
C
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Argentina provides a recent example of a currency board success
Indicate whether the statement is true or false
Gls
A) results in smaller variances of the estimator than OLS if the regressors are strictly exogenous. B) is the same as OLS using HAC standard errors. C) can be used even if the regressors are not strictly exogenous. D) can be used for time-series estimation, but not in cross-sectional data.
The information conveyed by changes in market prices is especially important in financial markets because
a. It forces individual investors to reveal their information about the prospects of a security b. It assesses business decisions c. It helps firms forecast the future demand for products d. All of the above
Which of the following is not an effort by McDonald's to cope with diseconomies of scale?
a. being exposed to country and regions risk, such as environmental protests b. putting mini-restaurants in airports, gas stations, and Wal-Marts c. allowing managers in each region of the U.S. more leeway in pricing and promotion d. reducing product development time e. closing unprofitable restaurants