The two-period dynamic monopoly model is more useful than the static monopoly model in analyzing monopoly behavior when
A) the product produced requires a bandwagon effect.
B) the product produced generates a positive network externality.
C) the monopoly initially uses a lower introductory price.
D) All of the above situations.
D
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In the Gordon growth model, a decrease in the required rate of return on equity
A) increases the current stock price. B) increases the future stock price. C) reduces the future stock price. D) reduces the current stock price.
What regulatory change did Congress approve in 2010 to reduce counterparty risk in the shadow banking system?
A) push more trading of derivatives onto exchanges B) required investment banks to follow the same rules on leverage as commercial banks C) require increased collateral for those trading derivatives D) banned trading of mortgage-backed securities
Ceteris paribus, the greater the foreign holdings of the U.S. treasury securities:
a. the lower the value of the U.S. dollar in the foreign exchange market. b. the higher the interest rate in the U.S. c. the greater the level of U.S. imports. d. the lower the wealth of the U.S. citizens. e. the lower the tax rate in the U.S. economy.
The maximin criterion can be defined as which of the following?
a. One seeks the maximum of the minimum payoffs to the various available strategies. b. One seeks the minimum of the maximum losses among the various available strategies. c. One seeks the maximum of the minimum losses to the various available strategies. d. One seeks the maximum of the maximum gains of the various available strategies.