Corporations can finance their activities through the sale of new stocks but are legally prohibited from selling bonds.

Refer to the above figure. Ajax and Greenco are oligopolists. Above you are given the payoff matrix for the two firms giving the payoff associated with different pricing strategies. What is the dominant strategy for Greenco?

A) high price B) low price C) There is no best strategy. D) Not enough information is given to determine the best strategy.

An alternative to maintaining an undervalued currency is to ________ the fundamental value of the exchange rate by ________ monetary policy.

A. decrease; tightening B. decrease; easing C. increase; tightening D. increase; easing