If two nations are equally armed it is highly likely that neither will initiate a conflict
a. True b. False
a
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In the 1970s, the Fed selected an interest rate as an operating target rather than a reserve aggregate primarily because it
A) had no interest in targeting a monetary aggregate, as evidenced by its unwillingness to target a reserve aggregate. B) was still very concerned with achieving interest rate stability. C) was committed to targeting free reserves. D) was committed to the real bills doctrine.
To deter a potential entrant, an existing firm in a market may threaten to sharply increase production so that the entrant will be left with a small share of the market
The firm can make this threat credible by limiting its own options, and possible actions of this type include: A) signing long-term sales contracts that commit the firm to high levels of output. B) building a very large factory that could potentially produce enough output to meet most of the market demand. C) signing long-term purchase contracts for large amounts of production inputs. D) all of the above
Which of the following would be most appropriate if the Federal Reserve wanted to increase the money supply in order to stimulate the economy?
a. Buy U.S. government securities. b. Force the Treasury to reduce the national debt. c. Raise the discount rate. d. Increase the reserve requirements.
Which of the following transactions can be categorized as outsourcing?
a. A U.S. furniture manufacturer buying a lumber facility. b. A U.S. firm transferring some of its operations to its new subsidiary in India. c. Nike selling its sportswear to customers through its franchisees across the world. d. A U.S. cosmetics firm using an advertising agency to market its products.