The Prisoner's Dilemma involves two spies who are held in separate soundproof rooms. But even if the two spies could communicate, what makes it difficult for them to achieve the cooperative solution (both not confessing)?
a. The problem is their lack of information.
b. The problem is that it is a nonzero sum game.
c. The problem is that both spies have incentives to double cross each other.
d. The problem is that all the outcomes are not particularly good for either player.
c
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Suppose you are currently in the long position of a long-term bond. In this case, to hedge against a capital loss, you would enter into a ________ contract to ________ a long-term bond in the future
A) interest-rate forward; sell B) interest-rate forward; buy C) exchange-rate forward; buy D) exchange-rate forward; sell
Cost-push inflation is to ________ as demand-pull inflation is to ________
A) impatience; inaccuracy B) entering; exiting C) activism; nonactivism D) fiscal; monetary E) none of the above
Explain why the competitive output maximizes welfare
What will be an ideal response?
First-differenced estimation is ideal for obtaining causal effects of explanatory variables that are constant over time.
Answer the following statement true (T) or false (F)