Refer to the payoff matrix. Suppose that Speedy Bike and Power Bike are the only two bicycle manufacturing firms serving the market. Both can choose large or small advertising budgets. If this is a one-time, simultaneous game, which cell represents the final outcome we would expect to occur?
A. A.
B. B.
C. C.
D. D.
A. A.
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The slope of the line in the above figure is
A) 8. B) 0.05. C) 0.125. D) 0.10.
M3 is an example of a Federal Reserve
A) directive. B) tool. C) intermediate target. D) operating target.
In August 2015 investor sentiment shifted against the Chinese yuan. Investors sold the yuan and bought dollars, as financial capital flowed out of China, seeking better rates of return in other countries. What actions did China take in response to this situation?
A. China sold the yuan to encourage further depreciation in an attempt to improve its trade deficit. B. China used $1 trillion of its foreign exchange reserves to purchase the yuan in an attempt to prevent further devaluation and tightened capital controls on financial outflows. C. China's monetary authority sold the yuan in an attempt to prevent further devaluation and raised interest rates to stem the outflow of foreign capital. D. China loosened capital controls to encourage foreign investment into the Chinese economy.
Fixed weight indexes
A. account for responses to supply shifts. B. generally become less accurate the closer in time they are to the base year. C. generally become less accurate the farther in time they are from the base year. D. account for response to demand shifts.