Answer the question using the table. Figures are in billions of dollars. The equilibrium interest rate and quantity of loanable funds demanded and supplied in this market will be
A. 12 percent and $22 billion.
B. 14 percent and $26 billion.
C. 10 percent and $18 billion.
Ans: A. 12 percent and $22 Billion
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Refer to the payoff matrix below. Which of the following is true for Camping R Us?
A) The Low strategy dominates the Middle strategy.
B) The Middle strategy dominates the Low strategy.
C) The Low strategy dominates the High strategy.
D) The High strategy dominates the Low strategy
Suppose that Bieber and Rihanna are duopolists in the music industry. In May, they agree to work together as a monopolist, charging the monopoly price for their music and producing the monopoly quantity of songs. By June, each singer is considering breaking the agreement. What would you expect to happen next?
a. Bieber and Rihanna will determine that it is in each singer's self interest to maintain the agreement. b. Bieber and Rihanna will each break the agreement. Both singers' profits will decrease. c. Bieber and Rihanna will each break the agreement. Both singers' profits will increase. d. Bieber and Rihanna will each break the agreement. The new equilibrium quantity of songs will increase, and the new equilibrium price also will increase.
If you advertise and your rival advertises, you each will earn $4 million in profits. If neither of you advertises, you will each earn $10 million in profits. However, if one of you advertises and the other does not, the firm that advertises will earn $1 million and the non-advertising firm will earn $5 million. Which of the following is true?
A. A dominant strategy for firm A is to advertise. B. A Nash equilibrium is for both firms to advertise. C. A dominant strategy for firm B is to advertise. D. None of the answers is correct.
A nominal appreciation of the Mexican peso (against all currencies) indicates that
A) the peso price of foreign currency has risen. B) the Mexican real exchange rate will not change if the price level in Mexico falls. C) the peso price of, for example, the U.K. pound has decreased. D) the number of units of foreign currency that one can obtain with one peso has increased.