An incumbent's threat to use limit pricing if a firm enters the market
A) is credible if the firms have identical costs and market demand supports both firms.
B) is credible if the firms have different costs and market demand won't support both firms.
C) is not credible if the firms have different costs and market demand won't support both firms.
D) is cheap talk, because the other firm will enter and the incumbent will still be able to charge monopoly pricing.
B
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An international organization created at the Bretton Woods conference in 1944 that helps coordinate international financial flows and can arrange short-term loans between countries is called the:
A) World Bank. B) International Monetary Fund. C) U.S. Treasury. D) U.S. Agency for International Development.
Analysis of macro policy and theory has resulted in of the following views?
A) There should be no constraints imposed on fiscal or monetary policy. B) A constitutional amendment is the most appropriate method to constrain fiscal policy. C) The heads of the central bank should be chosen by popular elections. D) all of the above E) none of the above