Cooperative equilibriums:
A. are impossible to reach in real life.
B. never occur unless players act in their own self-interest.
C. never result in positive-positive outcomes.
D. can arise if a game is repeated.
D. can arise if a game is repeated.
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A situation where a consumer says he does not know his preference ordering for bundles X and Y would violate the property of:
A. more is better. B. complementarity. C. substitutability. D. completeness.
Consider that a cartel is functioning at full effectiveness. If the cartel's marginal cost of production increases, the cartel's profit-maximizing price
A. also increases. B. initially decreases and then increases. C. decreases. D. remains constant.
Suppose the actual federal funds rate is below the rate implied by a particular inflation goal. In this situation, the Taylor rule implies that
A) monetary policy is expansionary. B) monetary policy is contractionary. C) monetary policy is neither expansionary or contractionary. D) fiscal policy is contractionary.
Lenders generally want a higher interest rate to compensate them when loans stretch over a longer period because:
A. lenders want to be compensated for being unable to get their money back quickly. B. the opportunity cost increases over time. C. there's more uncertainty about potential future investment opportunities. D. All of these are true.