The monopolistic competitor
A. produces a good or service that has no close substitutes.
B. is usually a small firm.
C. has very little competition.
D. is protected by substantial barriers to entry.
B. is usually a small firm.
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How does an expansionary monetary policy affect aggregate expenditures according to the bank lending channel?
What will be an ideal response?
The existence of automatic stabilizers will
A) cause the effects of shocks to aggregate demand to have a larger effect on GDP. B) reduce the recognition lag of discretionary fiscal policy. C) eliminate recessions. D) reduce the size of recessionary and inflationary gaps.
The period from 1977 through 1989 saw a wave of corporate mergers in the U.S. These mergers were characterized by
a. the use of junk bonds for financing buyouts. b. the low debt-to-equity ratios of the resulting firms. c. resulting firms that focused on "core competencies" rather than diversification. d. a "buyers' market" in which acquiring firms could purchase the stock of takeover targets for less than market value. e. All of the above.
Acquiring a supplier because it becomes more profitable
a. will raise the asking price to offset any increase in cash flow over time b. will increase your profits c. will decrease your profits d. will make you alter operations