The above figure shows a payoff matrix for two firms, A and B, that must choose between selling basic computers or advanced computers. How many Nash equilibria are there?
A) 0
B) 1
C) 2
D) 4
C
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Foreign currency assets held by a government for the purpose of purchasing domestic currency in the foreign exchange market are called:
A. fixed-exchange-rate deposits. B. purchasing-power-parity funds. C. international reserves. D. balance-of-payment currency.
Suppose you have $400 and the inflation rate is 5 percent. In order to earn a real return of $16 on your investment, the nominal interest rate needs to be near
A) 0 percent. B) 4 percent. C) 6 percent. D) 9 percent.
What is a credit union?
(A) A modified type of savings and loan that makes loans for housing. (B) A bank that specializes in retirement savings accounts. (C) A bank that takes deposits but does not make loans (D) A cooperative lending institution for a particular group.
What will happen to the demand curve for workers in steel mills if some technology that increases their productivity is introduced assuming all else equal?
A) It will cause a downward movement along the demand curve of the workers. B) It will cause an upward movement along the demand curve of the workers. C) It will cause a leftward shift in the demand curve of the workers. D) It may cause a rightward shift in the demand curve of the workers.