The above figure shows a payoff matrix for two firms, A and B, that must choose between a high-price strategy and a low-price strategy. Both firms setting a high price is NOT a Nash equilibrium because
A) setting a high price is the dominant strategy for each firm.
B) neither firm can improve its payoff by setting a low price given that the other firm is setting a high price.
C) there is no dominant strategy for either firm.
D) both firms can improve their payoff by setting a low price given that the other firm is setting a high price.
D
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Which of the following will not shift the aggregate demand cure to the left?
a. Consumers become more optimistic about the future. b. Government spending decreases. c. Business optimism decreases. d. Consumers become pessimistic about the future.
Recall from the text when Amar Bazazz discovered that very little of the actual gold deposits were ever taken from his cave, he inadvertently discovered the concept of
a. excess reserves b. bank liabilities c. loanable funds d. required reserves e. fractional reserves
The issuance of new debt in payment of previously issued debt is called refinancing.
Answer the following statement true (T) or false (F)
Falling below a minimum standard of living illustrates the concept of absolute poverty.
Answer the following statement true (T) or false (F)