If the probability of losing your job remains ________, a recession would be a good time to purchase a home because the Fed usually ________ interest rates during this time.
A) low; lowers
B) low; does not change
C) high; lowers
D) low; raises
E) high; raises
Question 2
According to an article the Wall Street Journal, The big car makers are pushing a wide
array of new technology into production, responding to relentless competitive pressure,
rising energy prices and consumer demand for better safety.
Source: Joseph B. White, Ford, GM Eye Shift in Buying Habits, Wall Street Journal, May 22, 2006.
Which of Porter's competitive forces does this statement allude to?
A) competition from foreign auto manufacturers
B) competition from substitute products from outside the industry
C) competition from existing firms within the industry
D) the threat of competition from new entrants
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