If a Firm Is Afraid of Being Prevented from Using

question 86

Multiple Choice

If a firm is afraid of being prevented from using a certain supplier due to a proposed merger, what type of merger is the proposed merger likely to be?

• A)A consolidation
• B)A horizontal merger
• C)A conglomerate merger
• D)A vertical merger

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Definitions:

Wealth Redistribution

The transfer of income and wealth from some individuals to others by means of a social mechanism such as taxation, public services, or welfare.

Inflation

The pace at which overall costs for products and services increase, diminishing the buying power.

Paul Volcker

A former Chairman of the Federal Reserve known for his measures to combat inflation through high interest rates in the late 1970s and early 1980s.

Contractionary Policy

Economic policy measures aimed at reducing spending or increasing taxes to slow down an overheating economy.