A Very Small Country Is a Net Foreign Lender and Its

question 20

Multiple Choice

A very small country is a net foreign lender and its supply of loanable funds increases.As a result,the equilibrium quantity of loanable funds used in the country ________ and the country's foreign lending ________.

• A)increases;decreases
• B)does not change;does not change
• C)does not change;increases
• D)increases;does not change
• E)does not change;decreases

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Definitions:

Greenmail

A tactic where a company buys back its own shares at a premium from a hostile party to prevent a takeover.

Target Management

The process of identifying, organizing, and prioritizing business objectives and key performance indicators to achieve strategic goals.

White Knight

A post-offer technique where a target company invites another suitor to outbid a hostile bidder. The second suitor agrees that it will retain the existing management.

Hostile Bidder

An entity attempting to acquire another firm against the wishes of the target company's management and board.