If the required reserve ratio is 10% and the central bank sells $100,000 of government securities to bank X, then government securities will by and the money supply will  * 1) Increase; $100,000; decrease by $1,000,000

2) Increase; $100,000; increase by $100,000

3) Decrease; $100,000; decrease by $100,000

4) Decrease; $100,000; increase by $1,000,000

Adrawback of short-term contracting as an alternative to making a component in-house is thata. it is the most-integrated alternative to performing an activity so the principal company has no control over the agent. b. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality. c. it fails to allow a long planning period that individual market transactions provide. d. the buying firm cannot demand lower prices due to the lack of a competitive bidding process.