Falling transportation costs in the 19th century
a. fostered regional specialization according to comparative advantage.
b. created increasing lags for price declines along the Mississippi.
c. propelled the process of western expansion.
d. All of the above.
e. Both a and c are correct.
e. Both a and c are correct.
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The decline in the value of the yen in 2014 and 2015 occurred as a result of the Japanese central bank, the Bank of Japan, following an expansionary monetary policy
Investors expected that the result would be lower nominal Japanese interest rates and a higher inflation rate. In response, investors ________, causing the value of the yen to decline against the dollar. A) bought Japanese yen and sold U.S. dollars B) bought Japanese yen and bought U.S. dollars C) sold Japanese yen and bought U.S. dollars D) sold Japanese yen and sold U.S. dollars
Two firms would sometimes be better off if they got together and agreed to charge a high price, rather than to compete and risk having to charge a lower, competitive price. What is the greatest deterrent to this strategy?
A) One of the firms may decide to lower its price and take business away from the firm that charged the high price. B) The firms may find that the price they charge is greater than the price that would maximize their profits. C) An agreement by firms to charge high prices is illegal. The government can fine the firms and send their managers to jail. D) Consumers may resent having to pay high prices and not buy from either of the firms.