All of the following are sunk cost investments that precommit an incumbent to aggressively defend market share and the cash flow prior to threatened entry except
a. reputational investments in company logos (e.g., Beatrice)
b. automobile showrooms
c. retail displays which hold only L'eggs egg-shaped hosiery packages
d. neon signage for an independently owned Krispy Kreme store
e. excess capacity in a declining industry
b
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All else the same, when the Fed calls in a $100 discount loan previously extended to the First National Bank, reserves in the banking system
A) increase by $100. B) increase by more than $100. C) decrease by $100. D) decrease by more than $100.
An increase in the foreign interest rate causes the demand for domestic assets to shift to the ________ and the domestic currency to ________, everything else held constant
A) right; appreciate B) right; depreciate C) left; appreciate D) left; depreciate
Describe the effects of contractionary fiscal policy by the domestic government on output, the real interest rate, and net exports in both the domestic and foreign country, using a Keynesian model
What will be an ideal response?
If a firm produces an experience good, its mode of advertising will be
A) persuasive advertising. B) direct advertising. C) not to advertise. D) none of the above.