Predatory pricing occurs when a firm sells
A) above cost to any customers who have no good alternative.
B) above cost to low-income customers who have no good alternative.
C) at whatever prices the market will bear.
D) below cost in order to eliminate competitors.
E) only to customers who agree to rebate a portion of the price.
Question 2
Which is the most popular tool of the Fed used to control the stock of money?
A) Manipulating reserve requirements.
B) Buying and selling government bonds.
C) Manipulating the discount rate.
D) Issuing new U.S. Treasury bonds.
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