Conglomerate integration:
A. improves cash flow by exploiting the cyclical nature of different product lines.
B. exploits economies of scope by merging the production of similar products.
C. reduces the transaction costs of acquiring inputs.
D. All of the statements are correct.
Answer: A
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a. True b. False
A government may use deficit financing to smooth tax rates over time
a. True b. False Indicate whether the statement is true or false
Lydia, a citizen of Italy, produces scarves and purses that she sells to department stores in the United States. Other things the same, these sales
a. increase U.S. net exports and have no effect on Italian net exports. b. decrease U.S. net exports and have no effect on Italian net exports. c. increase U.S. net exports and decrease Italian net exports. d. decrease U.S. net exports and increase Italian net exports.
One way the government can boost the economy out of a recession is:
A. with public announcements telling the public to save their money. B. by increasing government spending. C. by setting price ceilings on most goods so people can afford them. D. None of these will help an economy in recession.