Political risk is the possibility that the government of the host country will alter its policies in ways that harm the multinational enterprise.
Answer the following statement true (T) or false (F)
True
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Anna's Antiques expects to get two bidders for the unique china teacup it sells. Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability. If Anna can only set one price, what price should she set?
a. $100 b. $70 c. Any price higher than $100 d. Any price lower than $70
A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.
The simple quantity theory of money predicts that if
A) the money supply rises by $200, then GDP falls by $200. B) GDP rises by $400, then the money supply rises by $400. C) the money supply rises by 10 percent, then the price level rises by 10 percent. D) the money supply falls by $300, then GDP rises by $300.
If Congress increases taxes to balance the federal budget, then to prevent additional unemployment and a recession the Fed can
a. reduce interest rates by increasing the money supply. b. increase interest rates by decreasing the money supply. c. increase interest rates by increasing the money supply. d. reduce interest rates by decreasing the money supply.