An oligopolist that cheats on a collusive agreement by reducing price will quickly be forced out of the industry by its competitors
a. True
b. False
B
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Which action could the Fed use to decrease the money supply?
A) a tax increase B) a decrease in the discount rate C) an increase in the required reserve ratio D) an open market purchase
When the AE line lies above the 45° line,
A) real GDP exceeds aggregate planned expenditure. B) there are unplanned increases in inventories. C) aggregate planned expenditure is less than real GDP. D) the price level is rising. E) there are unplanned decreases in inventories.
Because shifts in aggregate demand are not viewed as being particularly important to aggregate output fluctuations, they do not see much need for activist policy to eliminate high unemployment. "They" refers to proponents of
A) the natural rate hypothesis. B) monetarism. C) the Phillips curve model. D) real business cycle theory.
Assume that you want to invest in Thailand and therefore need to exchange U.S. dollars for Thai baht. You are at the bank and see that, depending on whether you use the bid or the ask rate, you have to pay either $10,000,000 or $11,000,000 to get a certain amount of baht. Which amount is correct?
a. It is not possible to tell without knowing which amount was calculated with which exchange rate. b. It is not possible to tell without knowing the bid and ask rate as well as the desired amount in baht. c. It has to be $10,000,000. d. It has to be $11,000,000. e. It could be either $10,000,000 or $11,000,000