An Increase in the Australian Interest Rate Relative to Other

question 58

Multiple Choice

An increase in the Australian interest rate relative to other countries will lead to ________ in the supply of dollars and a ________ in the exchange rate.

• A) a decrease; fall
• B) a decrease; rise
• C) an increase; fall
• D) an increase; rise
• E) no change; rise

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Definitions:

Sherman Act

A key U.S. antitrust law aimed at preventing monopolies and promoting competition among businesses.

DuPont Cellophane Case

The antitrust case brought against DuPont in which the U.S. Supreme Court ruled (in 1956) that while DuPont had a monopoly in the narrowly defined market for cellophane, it did not monopolize the more broadly defined market for flexible packaging materials. It was thus not guilty of violating the Sherman Act.

Microsoft Case

A 2002 antitrust case in which Microsoft was found guilty of violating the Sherman Act by engaging in a series of unlawful activities designed to maintain its monopoly in operating systems for personal computers; as a remedy the company was prohibited from engaging in a set of specific anticompetitive business practices.

DuPont Cellophane Case

A landmark antitrust case in which DuPont was accused of monopolistic practices in the cellophane market, highlighting issues of market dominance and competition.