If an automobile manufacturer has an agreement with its air bag supplier, this is an example of a ________ agreement.
A) rightward
B) vertical
C) horizontal
D) leftward
B) vertical
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When government pays individuals to purchase pollution-reducing devices, that payment is called a subsidy
Indicate whether the statement is true or false
Railroads attracted funds from foreign investors
Indicate whether the statement is true or false
A critical assumption for the simple money multiplier (1/ rrd) to hold is that
a. banks do not hold excess reserves. b. the public does not increase their level of currency holdings. c. the required reserve ratio has to be greater than one. d. both a and b. e. all of the above.
What is the primary problem caused by adverse selection?
a. Straining the insurance system b. Creating healthcare exchanges c. Mandating insurance premiums d. Increasing government regulation