What is true about dominant strategies in the game in Scenario 13.9?
A) "Pollute" is a dominant strategy for both firms.
B) "Pollute" is a dominant strategy for Lago only.
C) "Don't Pollute" is a dominant strategy for both firms.
D) "Don't Pollute" is a dominant strategy for Lago only.
E) There are no dominant strategies.
A
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In the table above, what is the government's sector balance?
A) a deficit of $700 billion B) a surplus of $600 billion C) a deficit of $100 billion D) a surplus of #100 billion
Provide four reasons for the changes observed in per-pupil spending during the latter half of the twentieth century
What will be an ideal response?
An increase in our federal government's budget deficit will likely:
a. increase the national debt. b. increase interest rates. c. be less effective in stimulating the economy than the spending multiplier implies because of crowding out. d. decrease borrowing by households and businesses. e. All of the answers are correct.
Assume a central bank follows a rule that requires it to take steps to keep the price level constant. If the price level fell because of a decrease in aggregate demand and an increase in aggregate supply that kept output unchanged, then
a. the central bank would have to decrease the money supply which would decrease output. b. the central bank would have to decrease the money supply which would increase output. c. the central bank would have to increase the money supply which would decrease output. d. the central bank would have to increase the money supply which would increase output.