If the target rate of interest is higher than the current equilibrium interest rate, the Fed will: A. buy Treasury bills, decrease the supply of money, and increase the interest rate back to the target rate. B. sell Treasury bills, decrease the supply of money, and increase the interest rate back to the target rate. C. sell Treasury bills, increase the supply of money, and increase the interest rate back to the target rate. D. sell Treasury bills, increase the supply of money, and decrease the interest rate back to the target rate. E. buy Treasury bills, increase the supply of money, and decrease the interest rate back to the target rate.

You are the manager in charge of global operations at bankglobal – a large commercial bank that operates in a number of countries around the world. you must decide whether or not to launch a new advertising campaign in the u.s. market. your accounting department has provided the accompanying statement, which summarizes the financial impact of the advertising campaign on u.s. operations. in addition, you recently received a call from a colleague in charge of foreign operations, and she indicated that her unit would lose $8 million if the u.s. advertising campaign were launched. your goal is to maximize bankglobal’s value. should you launch the new campaign? explain. pre-advertising campaign post-advertising campaign total revenues $18,610,900 $31,980,200 variable cost tv airtime 5,750,350 8,610,400 ad development labor 1,960,580 3,102,450 total variable costs 7,710,930 11,712,850 direct fixed cost depreciation – computer equipment 1,500,000 1,500,000 total direct fixed cost 1,500,000 1,500,000 indirect fixed cost managerial salaries 8,458,100 8,458,100 office supplies 2,003,500 2,003,500 total indirect fixed cost $10,461,600 $10,461,600