1. Which of the following occurs when a government increases the money supply?
A. It results in an overall decrease in credit.
B. It makes it difficult for individuals and companies to borrow from banks.
C. It makes it easier for banks to borrow from the government.
D. It causes a decrease in demand for goods and services.
E. It causes price deflation as the money supply exceeds goods and services output.
2. Which of the following is a way in which an enterprise with some market power might limit arbitrage so that their price discrimination policy works?
A. Pricing its products identically despite huge differences in demand across different markets.
B. Differentiating otherwise identical products among nations along some line, such as design or packaging.
C. Adopting a pricing strategy that matches what competitors charge in each of the different national markets
D. Limiting sales of is products to only a few nations
E. Selling its products at higher prices than normal to break even by selling fewer units.