Anti-trust regulators are likely to prohibit two firms from merging if
a. the combined firm will undercut competitors with lower prices.
b. the combined firm will have a large share of the market.
c. there are many other firms in the industry.
d. there are sizable synergies to the combination.
Answer: b. the combined firm will have a large share of the market.
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Refer to Table 7-6. Which country has an absolute advantage in producing belts?
A) Estonia B) Morocco C) both countries D) neither country
When the Fed buys government bonds on the open market,
A. the market rate of interest on government bonds are lowered AND the market rate of interest on corporate bonds are lowered. B. the market rate of interest on corporate bonds are increased. C. government yields drop but corporate yields rise. D. government and corporate yields rise.
The exchange rate is the:
a) cost of borrowing money. b) interest rate that banks charge their best customers. c) rate at which one currency can be exchanged for another. d) amount of gold backing a U.S. dollar.
The collapse of the Thai currency, the baht, was partially due to:
A. information provided by the central bank of Thailand. B. information not provided by the central bank of Thailand. C. the European Central Bank. D. inaction by the Federal Reserve.