Something that changes incentives so as to make otherwise empty threats or promises credible is called a:

A. dominant strategy.
B. commitment device.
C. strategic device.
D. Nash equilibrium.


Answer: B

Economics

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In the early 1930s, U.S. government expenditures increased as part of the New Deal without any change in taxes. This:

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Suppose disposable income increases from $5 trillion to $6 trillion. As a result, consumption expenditure increases from $4 trillion to ________. This result means the MPC equals ______.

What will be an ideal response?

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What will be an ideal response?

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