Vertical relationships can increase profits through
a. preventing firms from evading regulation
b. eliminating a double-markup problem
c. making the incentives of manufacturers and retailers unaligned
d. preventing price discrimination
b
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Although it declined in the first quarter of 2009, the United States was still running a trade deficit, which means that the United States would have to
A) increase the money supply. B) decrease the value of its financial account. C) devalue the dollar. D) sell some of its assets to foreigners.
In the above figure, suppose the economy is initially on the demand for money curve MD1. What is the effect of an increase in financial innovation such as the introduction of ATMs?
A) The demand for money curve would shift rightward to MD2. B) The demand for money curve would shift leftward to MD0. C) There would be a movement upward along the demand for money curve MD1. D) There would be a movement downward along the demand for money curve MD1.
In an inflationary atmosphere that everyone anticipates will persist, lenders will
A) desire a lower nominal interest rate to increase the real rate. B) desire a higher nominal interest rate to protect against the inflation. C) tend to see the real rate of interest increase, particularly if the inflation is unforeseen. D) have the real rate of interest guaranteed by the Federal Reserve Board.
Canada is classified by the International Monetary Fund as
A) an advanced economy. B) a developing economy. C) a transition economy. D) an emerging market economy. E) a natural-resource based economy.