To make a threat more credible, managers can do all of the following except which one?
A) make competitors aware of the firm's plans
B) keep competitors in the dark about the firm's plans
C) take action to lower the firm's costs
D) take action to increase the firm's capacity
B) keep competitors in the dark about the firm's plans
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If a government policy change harms a monopolist, the government could
A) tax those who get additional gains and compensate the monopolist, thereby making the change a Pareto improvement. B) increase the general tax rate and compensate the monopolist, thereby making the change a Pareto improvement. C) do nothing, because the change is a Pareto improvement. D) It is not possible to mitigate the harm to a monopolist.
In which of the following periods did fiscal spending on national defense as a percentage of GDP increase?
a. In the 1990s, after the dotcom bubble burst b. After World War I c. In 2007, during the Great Recession d. In the 1980s, near the end of the Cold War
Banks that actively manage liabilities will most likely meet a reserve shortfall by
A) calling in loans. B) borrowing federal funds. C) selling municipal bonds. D) seeking new deposits.
What would the interest rate need to be in order to earn $100 on an investment of $1,000 over two years? Assume interest compounds annually.
What will be an ideal response?