The purchase of Michelin Tire Company by General Motors is an example of a horizontal merger
a. True
b. False
Indicate whether the statement is true or false
False
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If MPS = .25, MPC must be _______ and national income is _______
a. 1.75; $750 billion b. 1.25; $75 billion c. 0.75; not discernible with the information provided d. 0.25; not discernible with the information provided e. 0.75; $75 billion
What effect does foreign exchange market intervention by the U.S. Federal Reserve to increase the value of the U.S. dollar have on the U.S. monetary base?
a. The U.S. monetary base decreases. b. The U.S. monetary base increases. c. It does not have an effect on the U.S. monetary base at all. d. The effect on the U.S. monetary base is ambiguous and depends on where counterparties deposit the funds.
The buying and selling of foreign currency by the central bank is a trade policy whose objective is:
A. reducing purchases of assets abroad. B. stabilizing the exchange rate against external shocks. C. stabilizing the interest rate against foreign capital outflows. D. promoting long term economic growth.
If there is no output for which product price is sufficient to cover variable costs
A. the firm earns economic profits by staying open. B. the firm should increase production. C. the firm should stay open in the short-run. D. the firm should shut down in the short run.