Which of the following is an example of strategic entry deterrence?
A) Marginal cost pricing.
B) Limit pricing.
C) Price leadership.
D) Mark-up pricing.
B
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Tight monetary policy will ________ net exports as a result of a ________ currency.
A. increase; weaker B. increase; stronger C. decrease; stronger D. decrease; weaker
Refer to Figure g. Lily's benefit function (dashed) is more concave than Millie's (dotted) in Figure g. Millie:
A. is more risk averse than Lily.
B. is less risk averse than Lily.
C. has a larger risk premium than Lily.
D. has a lower certainty equivalent than Lily.
If foreigners want to buy more U.S. bonds, then in the market for foreign-currency exchange the exchange rate
a. and the quantity of dollars traded rises. b. rises and the quantity of dollars traded falls. c. falls and the quantity of dollars traded rises. d. and the quantity of dollars traded falls.
Just prior to the year 2000, the Fed was concerned that people would make larger than normal bank withdrawals out of fear of what was called the "Y2K computer bug." Fearing that this would disrupt the banking system, the Fed wanted to use a defensive action to prevent any such disruption. This would take the form of open market bond:
A. sales that would prevent the federal funds rate from increasing. B. purchases that would prevent the federal funds rate from decreasing. C. purchases that would prevent the federal funds rate from increasing. D. sales that would prevent the federal funds rate from decreasing.