Tracy and Amy are playing a game in which Tracy has the first move at X in the decision tree shown below. Once Tracy has chosen either the top or bottom branch at X, Amy, who can see what Tracy has chosen, must choose the top or bottom branch at Y or Z. Both players know the payoffs at the end of each branch. 
If before Tracy chose, Amy could make a credible commitment to choose either the top or bottom branch when her turn came, then Amy would commit to the ________ branch and Tracy would choose the ________ branch.
A. top; top
B. top; bottom
C. bottom; bottom
D. bottom; top
Answer: D
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Comparing aggregate expenditure and aggregate incomes shows that
A) aggregate expenditure is usually greater than aggregate income. B) aggregate income is usually greater than aggregate expenditure. C) they are equal. D) aggregate income cannot equal aggregate expenditure if we have any savings.
A decrease in the supply of a good will result in a rightward shift in the demand curve for the good
a. True b. False Indicate whether the statement is true or false
The CPI in year one equaled 1.45. The CPI in year two equaled 1.51. The rate of inflation between years one and two was ________ percent.
A. 6.0 B. 4.0 C. 4.1 D. 4.5
In a model of the saving rate, which of these relationships is most crucial?
A) the effect of the saving rate on government spending B) the effect of government spending on the saving rate C) the effect of the saving rate on taxes D) the effect of taxes on the saving rate E) the effect of the saving rate on the real wage