When a game has more than one Nash equilibrium
a. players will choose the strategies which maximize total welfare.
b. players are likely to choose the strategies which minimize total welfare.
c. it is difficult to predict which of the equilibria will occur or whether it is stable.
d. it is difficult to predict which of the equilibria will occur but once one is reached it is likely to remain stable.
d. it is difficult to predict which of the equilibria will occur but once one is reached it is likely to remain stable.
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A currency system in which exchange rates are determined in free markets is called a
A) gold standard. B) flexible exchange rate system. C) fixed exchange rate system. D) all of the above
Refer to Table 8-4. Consider the data above (in billions of dollars) for an economy: Gross domestic product (in billions of dollars) for this economy equals
A) $2,200. B) $2,100. C) $1,600. D) $1,400.
If Toyota sells a $1000 bond in the United States, the bond is a
A) foreign bond. B) Eurobond. C) Tokyo bond. D) currency bond.
Countries that fix the foreign exchange value of their currencies, while following a highly expansionary monetary policy, will
a. be unable to maintain both the fixed-exchange rate and the full convertibility of their currency. b. generally experience rapid rates of economic growth. c. make it easier for their citizens to engage in international trade. d. have relatively low rates of domestic inflation.