Which of the following is true?
a. To reduce cannibalization among products, reposition a product so that it does not directly compete with the other
b. After acquiring a substitute product, raise prices on both the products
c. After acquiring a complementary product, lower prices on both the products
d. All of the above
d
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What did the gravity equation predict about trade within the borders of a nation?
a. Trade between states or regions within a nation is much more likely than trade outside the borders. b. Trade between states or regions within a nation is much less likely to occur. c. There was no predictive value for trade within a nation's borders. d. Trade between states or regions within a nation is more subject to national law and regulation and therefore not as predictable.
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and reserve-related (central bank) transactions in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period falls, and reserve-related (central bank) transactions become more negative (or less positive). b. The quantity of real loanable funds per time period falls, and reserve-related (central bank) transactions remains the same. c. The quantity of real loanable funds per time period and reserve-related (central bank) transactions remain the same. d. The quantity of real loanable funds per time period rises, and reserve-related (central bank) transactions remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.