Refer to the payoff matrix below. In reference to the Nash equilibrium/equilibria in this game, which of the following is true?
Healthy Snacks and Best Treats are two firms competing in the health food snacks market. Both are considering introducing a new health food snack made purely of dried power fruits. The payoff matrix shows their net economic profit in millions for the different strategies.
A) Best Treats Do Not Introduce and Healthy Snacks Do Not Introduce is a Nash equilibrium.
B) Best Treats Introduce and Healthy Snacks Introduce is a Nash equilibrium.
C) There are no Nash equilibria in this game.
D) Best Treats Introduce and Healthy Snacks Do Not Introduce is a Nash equilibrium.
D) Best Treats Introduce and Healthy Snacks Do Not Introduce is a Nash equilibrium.
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Comparing M1 and M2 we know that
A) M1 is larger because it contains currency. B) M2 is approximately equal to M1. C) M2 is larger because it contains M1 and other assets. D) M2 is larger because it contains more liquid assets than does M1.
Tight monetary policy and easy fiscal policy lead to
A. high real interest rates. B. roughly unchanged real interest rates. C. low real interest rates. D. roughly unchanged real interest rates only when Ricardian equivalence holds; otherwise, low real interest rates.
Investment is a smaller component of GDP than consumption, but it is a more stable component
Indicate whether the statement is true or false
When an economy experiences a one-time increase in productivity, there is an increase in the long-run, steady state value of ________
A) the growth rate of output B) the depreciation rate C) consumption per worker D) the saving rate