Which of the following is true about the game in Scenario 13.2?
A) ABC's dominant strategy is to offer a rebate.
B) ABC's dominant strategy is not offer a rebate.
C) XYZ's dominant strategy is to offer a rebate.
D) XYZ's dominant strategy is not offer a rebate.
E) Both ABC and XYZ offer a rebate as a dominant strategy.
E
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"Because monetary policy must be approved by the president of the United States, the president is chair of the Federal Open Market Committee." Analyze the previous statement—is it correct or incorrect?
What will be an ideal response?
If the Japanese yen depreciates against the U.S. dollar
A) the price of Japanese imports to the United States decreases. B) the price of United States exports to Japan decreases. C) the price of Japanese imports from the United States will decrease. D) there is no change in the price of Japanese exports to the United States.
What are the results of a contractionary monetary policy in an open economy with floating exchange rates and internationally mobile capital?
a. The dollar appreciates, which leads to an increase in exports and a decrease in imports. The country therefore winds up with a deficit in capital and a surplus in its balance of trade. b. The dollar appreciates, which attracts foreign capital. Also, imports rise and exports decline. The country therefore winds up with a surplus in capital and an increase in its trade deficit. c. The dollar depreciates, which attracts foreign capital. Also, exports rise and imports decline. The country therefore winds up with a deficit in capital and a surplus in its balance of trade. d. The dollar depreciates, which leads to a larger real GDP and a larger trade surplus.
The total indebtedness of the federal government in the form of outstanding interest-earning bonds is the
What will be an ideal response?