Firms should lower the prices on their goods
a. If the demand for the product is elastic
b. If it acquires a firm selling a complement good
c. If it acquires a firm selling a substitute good
d. Both a and b
d
You might also like to view...
Crowding out refers to the fall in
a. investment spending caused by higher taxes b. consumption spending caused by higher taxes c. consumption spending caused by higher levels of government spending d. government spending to do a balanced budget amendment e. private investment caused by an increase in government spending
Which of the following is NOT an inference of the rational expectations hypothesis?
A. Government policy actions that are anticipated have no real effects in the short run. B. Government policy actions have no real effects in the short run unless the actions are unanticipated. C. Government policy actions have no real effects in the long run. D. Government policy actions that are unanticipated have no monetary effects in the short run.