Which of the Following Is an Example of a Tying

question 18

Multiple Choice

Which of the following is an example of a tying contract?

• A)Jon refuses to buy office supplies from any one but Bridget.
• B)In order to carry a highly successful organic cleaning compound, Nature's Survival Store has to carry a much less successful line of laundry detergent made by the same company.
• C)Traveler's Rest, a travel agency, agrees to buy its insurance need from the Nathan Dean Insurance Agency if the agency agrees to let Traveler's Rest handle the owners' travel plans.
• D)A paper supply company agrees to give Harridan Industries a free case of paper towels for every dozen cases it purchases.
• E)A salesperson tells a contractor that its paint is mildew-resistant when this is untrue.

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Definitions:

Real Interest Rate

The interest rate adjusted for inflation, representing the true cost of borrowing and the real yield to lenders or investors.

Net Capital Outflow

The difference between the domestic country's purchase of foreign assets and the foreign purchases of the domestic country's assets over a specified period, reflecting the flow of capital across borders.

Capital Asset

A long-term asset such as equipment, real estate, or machinery that a company uses in its operations to generate wealth.

Loanable Funds

The market where savers provide funds to borrowers, usually influencing interest rates.