According to the figure shown, if Dunkin Donuts expands, then Starbucks should:
This figure displays the choices being made by two coffee shops: Starbucks and Dunkin Donuts. Both companies are trying to decide whether or not to expand in an area. The area can handle only one of them expanding, and whoever expands will cause the other to lose some business. If they both expand, the market will be saturated, and neither company will do well. The payoffs are the additional profits (or losses) they will earn.
A. also expand their business.
B. not expand.
C. give an ultimatum.
D. None of these statements is true.
B. not expand.
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An exchange rate system under which currencies are allowed to fluctuate with frequent interventions by central banks is called a
A) freely floating system. B) fixed system. C) managed floating system. D) None of the above.
Before 2000, the three most recent U.S. recessions occurred in
A) 1969-1973, 1979-1982, and 1994-1995. B) 1973-1975, 1982-1985, and 1990-1991. C) 1973-1975, 1981-1982, and 1990-1991. D) 1981-1982, 1990-1991, and 1998-1999.
During the financial crisis of 2008, Fed policy
a. caused the monetary base to shrink significantly. b. approximately doubled the M1 money supply. c. approximately doubled the monetary base. d. maintained the monetary base at a constant level.
Consider the following simple regression model y = ?0 + ?1x1 + u and z is an instrument for x. Suppose x and z are both positively correlated with u and Corr(z,x) > 0. Then, the asymptotic bias in the IV estimator is less than that for OLS only if:?
A. ?Corr(z,u)/ Corr(z,x) = Corr(x,u). B. ?Corr(z,u)/ Corr(z,x) > Corr(x,u). C. ?Corr(z,u)/ Corr(z,x) < Corr(x,u). D. ?Corr(z,u)/ Corr(z,x) ? Corr(x,u).