In a prisoners' dilemma game, in the Nash equilibrium
A) neither player gets his or her best outcome.
B) both players get their best outcome.
C) one player gets his or her best outcome and the other player does not.
D) collusion would not alter the outcome.
E) Either answer A or C might be correct depending on whether the players communicate with each other or do not communicate with each other.
A
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Suppose a new employee is promised a pension payment of $8000 in the twenty-fourth year after joining the firm. The current pension contribution is $2000 a year. Assuming a six percent rate of return, this pension plan is said to be
A) fully funded. B) partly funded. C) unfunded. D) fully vested.
Life cycle patterns create substantial inequality across age groups
Indicate whether the statement is true or false
Use the following graph to answer the next question.
If the interest rate rises from 2% to 3%, the supply of money must have
A. decreased by $100 billion. B. increased by $50 billion. C. decreased by $50 billion. D. decreased by $150 billion.
If the Fed were to impose a slight increase in the required reserves ratio, there would be _____.
(A) No change in the money supply. (B) An increase, then a decrease, in the money supply. (C) An increase in the money supply. (D) A decrease in the money supply.