How might a budget deficit affect the balance of trade?
A) A budget deficit reduces interest rates, which reduces exchange rates and reduces the balance of trade.
B) A budget deficit raises interest rates, which raises exchange rates and reduces the balance of trade.
C) A budget deficit raises interest rates, which raises exchange rates and increases the balance of trade.
D) A budget deficit reduces interest rates, which raises exchange rates and reduces the balance of trade.
B
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A firm is spending the profit-maximizing amount on product development when
A) people perceive the firm's product to be better than those of its competitors. B) the marginal cost of product development is equal to the marginal revenue from product development. C) the price of the good is higher than its marginal cost. D) the advertising costs are covered. E) the firm's total revenue exceeds its total costs.
Which of the following is an example of mixed bundling?
A) a suit jacket B) dinner at a buffet restaurant C) a desktop computer and monitor D) All of the above.