A merger between two firms that produce identical goods would be called

If the incremental capital output ratio is 3 and the ratio of saving to national income is 9%, according to the Harrod-Domar model the growth rate of income is

(a) zero. (b) 3%. (c) 6%. (d) 12%.

Assume a bank has $200 million of assets with a duration of 2.5, and $190 million of liabilities with a duration of 1.05. If interest rates increase from 5 percent to 6 percent, the net worth of the bank falls by

A) $1 million. B) $2.4 million. C) $3.6 million. D) $4.8 million.