A binary variable is often called a

When is a balance of payments account out of balance?

a. only when exports are greater than imports b. only when imports are greater than exports c. when exports are either greater or less than imports d. only when exports are greater or less than imports over a sustained period e. never

The kinked demand theory attempts to explain why an oligopolistic firm:

a. has relatively large advertising expenditures. b. fails to invest in research and development (R and D). c. infrequently changes its price. d. engages in excessive brand proliferation.