Answer: Decrease and Increase
Explanation:
According to the Mundell–Fleming model, in an economy with flexible exchange rates, expansionary fiscal policy will cause the net exports to decrease. Expansionary fiscal policy shifts the IS curve rightwards, as a result BOP surplus created in the economy. So, exchange rate decreases to shift the BOP back to its initial position. As a result of lower exchange rate, exports falls. Hence, net exports decreases.
Expansionary Monetary policy will cause the net exports to increases. Expansionary Monetary policy shifts the LM curve rightwards, as a result BOP deficit created in the economy. So, exchange rate increases to shift the BOP back to its initial position. As a result of higher exchange rate, exports increases. Hence, net exports increases.
Answer:
the average cost to reduce
Explanation:
In this situation, when The All-terrain Bike Company increases input (capital and labor) and this causes a proportional increase in output, this scenario The All-terrain Bike Company experiences is called a constant returns to scale which gives rise to decreased average costs.
This happens because buying larger quantity of inputs gives rise to a reduced cost of purchase because these things are being bought in bulk.
Answer:
b. products that have identical attributes, such as frozen yogurt.
Explanation:
A monopoly is formed when a firm or a group of firms have a an unfair advantage in supplying a product and faces no competition while operating.
It is important to identify the market where the monopolist exists.
In the given scenario where Dairy Cream wants to merge with EZ Freeze Inc., its main competitor and a maker of ice cream and other frozen desserts. The merger will eliminate competition and the product market is defined under ice cream and products that have identical attributes, such as frozen yogurt.
Answer:
The answer is True.
Explanation:
From the description, it seems that World Extraction Corp is behaving in a socially responsible way – even though its stakeholders might not have the same view. Though in the long run, a company which behaves in socially responsible manner might accumulate enough goodwill from the society around it to be perceived with a good reputation, stakeholders who do not fit the company’s vision might end up being detrimental to the company’s business.
