When a transfer price decreases
a. the profits of the division producing the intermediate product will rise
b. the profits of the division producing the intermediate product will fall
c. the costs of the division producing the intermediate product will rise
d. the costs of the division producing the intermediate product will fall
b
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The New York Stock Exchange is the only place where a corporation can sell stocks and raise money
a. True b. False Indicate whether the statement is true or false
Part of the pollution problem is due to
a. the absence of markets for goods like clean air and clean water. b. the lack of well-defined property rights to clean air and clean water. c. the unreliability of voluntary programs to cut pollution. d. All of the above are correct.
The Federal Open Market Committee oversees the money supply through the purchase and sale of government securities
a. True b. False Indicate whether the statement is true or false
Figure 36-7
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In Figure 36-7, there are three aggregate expenditure functions (C + I + G + X? IM) for an open economy. Which of the following would cause a movement from A to B?
A. a European economic expansion B. A decrease in the money supply C. An increase in the interest rate D. An increase in the U.S. price level