Nash equilibrium is:
a. where one player maximizes his payoff and the other doesn't
b. when each player's strategy is the best response to the other player's strategy
c. where the outcome is always efficient
d. difficult to determine
b
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Which of the following allow banks to minimize the cost to a business of borrowing?
I. Borrowing long and lending short II. Raising funds from a large number of depositors III. Creating money by lending all their reserves A) I only B) II only C) I and III D) II and III
If the marginal propensity to consume (MPC) is 0.90, the value of the spending multiplier is 90
a. True b. False Indicate whether the statement is true or false
If a country wants to keep the value of its currency fixed, then its central bank should
A. sell its domestic currency when there is an increase in the supply of that currency. B. buy domestic goods when there is an increase in the supply of its domestic currency. C. buy its domestic currency when there is an increase in the supply of that currency. D. sell domestic goods when there is an increase in the supply of its domestic currency.
Refer to the information provided in Figure 34.1 below to answer the question(s) that follow.
Figure 34.1Refer to Figure 34.1. The ________ in this economy is 1.25.
A. MPS B. MPC C. MPM D. open economy multiplier