Centralized decisionmaking is most commonly found in
A. emerging economies and industries.
B. firms that are expanding into other geographical areas.
C. highly vertically integrated firms.
D. stable industrial environments.
Answer: D
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When interest rates go down, people are
a. more likely to borrow b. less likely to borrow c. does not affect a person's consumption d. None of the above
If the spending multiplier is greater than 1.0, a $200 billion increase in autonomous investment will cause: a. equilibrium investment to increase by less than $200 billion
b. equilibrium investment to decrease by more than $200 billion. c. equilibrium real GDP demanded to increase by more than $200 billion. d. equilibrium real GDP demanded to decrease by less than $200 billion. e. equilibrium saving to decrease by more than $200 billion.