A merger wave can be set off
a. by government restrictions that prevent firms from reaching their minimum efficient scale
b. if the federal government raises corporate income taxes.
c. if the federal government lowers corporate income taxes
d. if minimum efficient scale falls
e. by some change in a market, such as a shift in market demand.
E
You might also like to view...
According to this Application, if you earn a salary of $80,000 in the first year and all prices decrease by half in the next 5 years, what will your nominal annual salary be in 5 years?
A) $8,000 B) $10,000 C) $20,000 D) $40,000
Under exchange-rate targeting, the central bank in the targeting country ________ lose the ability to pursue its own independent monetary policy and any shocks to the anchor country is ________ transmitted to the targeting country
A) does; directly B) does not; directly C) does; not directly D) does not; not directly
A change in nominal GDP sums up changes in
A) prices alone. B) physical production alone. C) physical production and hours of production time. D) physical production and prices.
Assume the economy is initially in equilibrium with real GDP equal to potential GDP. Other things equal, if the economy enters a recession, automatic stabilizers
A) reduce the magnitude of the multiplier and reduce the size of the decline in real GDP. B) reduce the decline in investment expenditures and therefore increase the real short-term interest rate. C) cause any decrease in real GDP to be offset by an equal decrease in the inflation rate. D) raise the interest rate to prevent the output gap from falling below equilibrium.