The above figure shows the payoff matrix for two firms, A and B, choosing to produce a basic computer or an advanced computer. The mixed-strategy Nash equilibrium is
A) Firm A produces an advanced computer with 80% chance, firm B produces an advanced computer with 20% chance.
B) Both firms produce advanced computers with 50% chance.
C) Firm A produces an advanced computer with 60% chance, firm B produces an advanced computer with 40% chance.
D) Both firms produce advanced computer with 80% chance.
D
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When the Fed sells government securities
A) reserves decrease, leading to a decrease in the money supply by an amount more than the sale of the government securities. B) reserves increase, leading to a increase in the money supply by an amount more than the sale of the government securities. C) reserves increase, leading to a decrease in the money supply by an amount more than the sale of the government securities. D) reserves decrease, leading to a increase in the money supply by an amount more than the sale of the government securities.
A command system uses a group of planners or central authority to make basic economic decisions
a. True b. False Indicate whether the statement is true or false
The bank's statement of liabilities (what it owes) and assets (what it owns) is known as the
a. legal reserve requirement b. fractional reserve system c. federal funds rate d. money creation account e. balance sheet
As one of the New Deal programs, the WPA was a government agency that
A. increased employment through construction projects. B. regulated the banking industry. C. regulated the securities industry. D. regulated the trucking and interstate commerce industries.