The short-term interest rate is determined in the:

To reduce inflation, the federal reserve could

a) expand money supply in order to raise interest rates, which increases investment b) expand money supply in order to lower interest rates, which increases investment c) contract money supply in order to lower interest rates, which increases investment d) contract money supply in order to raise interest rates, which decreases investment e) buy bonds and increase discount rate to encourage borrowing

What is one way firms can enforce tie-in sales?

A) One of the goods has no close substitutes. B) contractual arrangements C) information asymmetry D) Any of the above.