In a Nash equilibrium, firms are clearly strategically interdependent, and
A. they are noncooperative in determining market outcomes.
B. they are dependent on differentiated goods.
C. they cooperate with each other to determine market outcomes.
D. they determine price in a closed auction bid system.
Answer: A
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Based on data from the U.S. economy, the marginal propensity to consume is about
A) 0.95. B) 0.75. C) 0.60. D) 1.10. E) 0.87.
When the United States engaged in quantitative easing from 2008 to 2014, ________ rose sharply
A) bank reserves B) inflation C) the unemployment rate D) the money supply
In the short run, some costs are fixed
a. True b. False Indicate whether the statement is true or false
Assume that the central bank increases the reserve requirement. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period rises, and nominal value of the domestic currency falls. b. The quantity of real loanable funds per time period falls, and nominal value of the domestic currency rises. c. The quantity of real loanable funds per time period rises, and nominal value of the domestic currency remains the same. d. The quantity of real loanable funds per time period rises, and nominal value of the domestic currency rises. e. There is not enough information to determine what happens to these two macroeconomic variables.