When the price of a good falls, consumers may increase the quantity consumed because they have greater total purchasing power. This statement describes the:

The reason why some economists believe that attempts by the Fed to surprise the public in a systematic way cannot be successful is that

A) information about the Fed's plans will inevitably be leaked to the public. B) the Fed announces its goals before Congress and publishes its policy actions in the Federal Reserve Bulletin six weeks after they take place. C) the public would eventually figure out what the Fed's policies were, negating the Fed's surprise. D) competition in the money markets would neutralize the Fed's intervention.

If Happy Cows, a dairy manufacturer, sells its sour cream division, this is an example of ________.

A) divestiture B) forward integration C) backward integration D) outsourcing