It more difficult for firms to reach collusive agreements when they are of different sizes, with substantially different production costs and estimates of demand conditions, than when these differences are smaller
a. True
b. False
Indicate whether the statement is true or false
True
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The dominant forces causing changes in exchange rates in the very short run are
a. changes in relative interest rates b. changing expectations regarding future exchange rates c. economic fluctuations d. the erratic spending patterns of tourists e. changes in relative interest rates and in expectations of future exchange rates
To prevent cost-push inflation
A) there must not be an excess demand for money B) interest rates must not rise C) there must not be an increase in government purchases D) the Fed must not let the quantity of money rise persistently.
When critics of U.S. farm policy say that it treats symptoms rather than causes, they mean that the:
A. policy attempts to bolster low farm income, while the real problem is an overallocation of resources to agriculture. B. policy deals with the overallocation of resources to agriculture, while the basic farm problem is low incomes. C. policy attempts to bolster low farm incomes, while the real problem is an underallocation of resources to agriculture. D. restriction of output in the short run may reduce productive capacity in agriculture in the long run.
The demand curve a monopolist faces is
A) horizontal. B) the industry demand curve. C) vertical. D) inelastic at all points.