How might department stores best protect themselves against the risk of recession?
A) Buy insurance policies that pay off when a recession occurs.
B) Stand ready to go out of business if a recession occurs.
C) Sell goods that are complements to one another.
D) Sell both substitute and complement goods.
E) Sell both normal and inferior goods.
E
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A clause in a loan contract disallowing the borrower from acquiring other companies during the term of the loan is an example of a
A) guarantee. B) collateral agreement. C) restrictive covenant. D) moral hazard.
In the absence of discrimination, as human capital investments increase, wages will generally
A) decrease. B) increase. C) not change. D) increase or decrease.
During World War II, price supports for agriculture:
a. were not generally needed because of high demand. b. were considered by Congress but never enacted. c. were rescinded in order to encourage reductions in output. d. led to decreases in the supply of many products.
Which of the following would likely increase the money supply?
a. The purchase of government securities by one bank from another bank b. An increase in the required reserve ratio c. An increase in the reserves of a commercial bank d. An increase in the discount rate e. The sale of government securities by a bank to the Fed