The sequence of events following an increase in the federal deficit would be higher interest rates, a(n)
a. depreciating dollar, and a larger current account deficit.
b. depreciating dollar, and a smaller current account deficit.
c. appreciating dollar, and a larger current account deficit.
d. appreciating dollar, and a smaller current account deficit.
c
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A Nash equilibrium is defined as
A) earning zero economic profit in the long run. B) forming a cartel with strong penalties for cheaters. C) relying on other game players to realize the benefit of cooperation. D) each player taking the best possible action given the action of the other player. E) each player taking the action that is best for all the players.
Which of the following is not possible when a firm is maximizing its profits?
a. MC = MR b. AVC is at its minimum point c. AFC < AVC d. MC = MR and MC is decreasing e. MC = MR and MC is increasing
Marginal land is land that is not worth anything under any circumstances.
Answer the following statement true (T) or false (F)
In a "game," strategies are
A. the potential returns the participants may get. B. the plans made by the participants. C. the laws regulating the industry. D. the reactions of firms to the changes in the economy.