A cartel is a group of firms
A) acting separately to limit output, lower price, and decrease economic profit.
B) acting together to limit output, raise price, and increase economic profit.
C) legally fixing prices.
D) acting together to erect barriers to entry.
E) that compete primarily with each other rather than the other firms in the market.
B
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Which of the following is a characteristic of stock?
A) Stock represents ownership in a firm B) Stock represents a promise to repay a fixed amount of funds. C) The face value or principal plus interest is repaid at a specified period of time. D) The length of coupon payments is fixed by the stated maturity period.
In the 1990s, business organizations were
A) flattened. B) turned inside out. C) formed into horizontal structures. D) all of these choices.
A bank may hold secondary reserves, such as U.S. government securities because:
a. they pay higher interest rates than deposits at the Fed, and are easily converted into cash assets. b. they pay higher interest rates than deposits at the Fed, even though they are hard to convert assets. c. they pay lower interest rates than deposits at the Fed, but are more easily converted into cash assets. d. they pay lower interest rates than deposits at the Fed, and are hard to convert into cash assets.
The key to the success of forward guidance as a monetary policy tool is:
A. credibility. B. timing. C. transparency. D. a favorable exchange rate.