In the case in which foreign affiliates undertake the same kind of production as the parent firm, the affiliate ________ some trade in that product. The affiliate also ________ trade through better local marketing of other products produced by the multinational in other countries.

If the government wants to manipulate the equilibrium price, it will normally create a price floor or price ceiling; if the government want to manipulate the equilibrium quantity, it will normally impose taxes or award subsidies

Indicate whether the statement is true or false

If the sacrifice ratio is 4, then reducing the inflation rate from 9 percent to 5 percent would require sacrificing

a. 4 percent of annual output. b. 8 percent of annual output. c. 12 percent of annual output. d. 16 percent of annual output.