Policies that make it more difficult to fire an employee are likely to:

Many firms use odd pricing—charging prices such as $.99 instead of $1.00 and $9.99 instead of $10.00

One reason for this pricing strategy is that consumers will somehow believe that the difference in price appears to be greater than it actually is. Researchers conducted consumer surveys to determine whether this is actually the case. What was the result of these surveys? A) The survey results were inconclusive because most consumers gave unreliable responses to the survey questions. B) Although the results were not conclusive, there is some evidence that odd pricing makes economic sense. C) The surveys found indifference regarding this strategy among most consumers, but hostility among other consumers. The latter group resented what they viewed as an attempt to fool them into buying products with odd prices. Researchers concluded that odd pricing is counterproductive. D) The surveys found that small differences in price cause small differences in quantity demanded. There is no evidence that odd pricing makes economic sense.

A Japanese bank buys U.S. government bonds, this purchase

a. increases U.S. net capital outflow and has no affect on Japanese net capital outflow. b. increases U.S. net capital outflow and increases Japanese net capital outflow. c. increases U.S. net capital outflow, but decreases Japanese net capital outflow. d. decreases U.S. net capital outflow, but increases Japanese net capital outflow.