Holders of __________ bonds can exchange their bonds into shares of the company's common stock at a predetermined price

The real interest rate ________ inflation ________

A) is unaffected in the long run by; because of the classical dichotomy B) moves one for one with expected; in the long run C) always increases with; but because of the Fisher effect lower expected inflation ensues D) all of the above E) none of the above

Refer to the below payoff matrix. Assume that firm B adopts a low-price strategy while firm A maintains a high-price strategy. Compared to the results from a high-price strategy for both firms, firm B will now:

Answer the question based on the following payoff matrix for a duopoly in which the numbers indicate the profit in millions of dollars for each firm:




A. Lose $75 million in profit and firm A will gain $50 million in profit
B. Gain $50 million in profit and firm A will lose $50 million in profit
C. Gain $75 million in profit and firm A will lose $50 million in profit
D. Gain $50 million in profit and firm A will lose $75 million in profit