Assume to two firms in an industry with an index

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Q1. Assume to two firms in an industry with an index of 5,000 announce a merger. The U.S. Justice Department concludes the merger will boost the index to 5,500. The antitrust authorities will most likely

Q2. The inflation rate is 10 percent (%) also the central bank is considering slowing the rate of money growth to reduce inflation to 5 percent (%). Economist Milton believes to expectations of inflation change quickly in response to latest policies while economist James believes to expectations are very sluggish. That economist is more likely to favor the proposed change in monetary policy? Explain why?

Reference no: EM1319090

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