Game theory replaces the standard supply and demand model used by economists.
Answer the following statement true (T) or false (F)
False
Game theory complements rather than replaces the standard economic models.
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According to this theory of the term structure, bonds of different maturities are not substitutes for one another
A) segmented markets theory B) expectations theory C) liquidity premium theory D) separable markets theory
An example of tax smoothing is provided by evidence of
A) temporary changes in defense expenditures by the government. B) reductions in tax rates prior to presidential elections. C) Keynesian tax cuts designed to help the economy recover from a recession. D) reliance on debt financing rather than taxation during World War II.
Suppose Trust Bank purchases government bonds worth $55 million. If the bank does not want to reduce its reserves, _____
a. it should start giving more loans b. it should stop giving new loans c. it should raise the discount rate d. it should lower the minimum required ratio
Consider to the accompanying payoff matrix. 
If player A makes his or her choice before player B, then what will be the equilibrium outcome of this game?
A. Player A and player B both get 60. B. Player A gets 5 and player B gets 70. C. Player A gets 70 and player B gets 5. D. Player A and player B both get 50.