All of the following are true regarding the Economic Order Quantity model except which one?
A) It determines the cost-minimizing quantity managers should order to keep in inventory.
B) It assumes demand is known with certainty.
C) It assumes demand is spread evenly over a time period.
D) It accounts for changes in interest rates.
D) It accounts for changes in interest rates.
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When a transfer price increases
a. the profits of the division using the intermediate product will rise b. the profits of the division using the intermediate product will be unaffected c. the profits of the division using the intermediate product will fall d. the costs of the division using the intermediate product will fall
Figure 14-6
In the situation shown in , how could the Fed return the economy to potential output?
a.
decrease government spending
b.
decrease taxes
c.
sell U.S. government bonds to banks
d.
lower the discount rate
e.
lower the required reserve ratio