Refer to the payoff matrix. Suppose that Speedy Bike and Power Bike are the only two bicycle manufacturing firms serving the market. Both can choose large or small advertising budgets. Is there a Nash equilibrium solution to this game?
A. There is no possible Nash equilibrium solution.
B. A Nash equilibrium can occur at either cell B or cell C.
C. Cell A represents a Nash equilibrium.
D. Cell D represents a Nash equilibrium.
C. Cell A represents a Nash equilibrium.
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At higher interest rates the
A) money supply is indeterminate. B) quantity of money demanded is higher. C) money supply is higher. D) quantity of money demanded is lower.
It is clear that government provision of education is not necessary _____
a. because of the existence of private schools b. from the size of positive externalities c. because of the lack of asymmetrical information between parents and teachers d. because education externalities are negatively inframarginal
The quantity theory of money and prices asserts that
A) increases in the money supply lead to inflation. B) increases in the money supply lead to an increase in the velocity of money. C) increases in the money supply lead to a decrease in the velocity of money. D) increases in the money supply will increase real GDP.
Which of the following correctly describes factors that contributed to the change in the federal budget deficit between 1990 and 1998?
a. Federal taxes were cut by President George H.W. Bush and Congress in 1990, which helped in his reelection campaign in 1992 and contributed to a continually rising budget deficit during the 1990s. b. Federal taxes were cut again by President Bill Clinton in 1993, which further contributed to a continually rising budget deficit during the 1990s. c. Accelerated growth in federal outlays triggered the rapid expansion of the federal workforce between 1990 and 1998, which further contributed to a continually rising budget deficit during the 1990s. d. Taxes were raised, spending was cut, productivity rose, consumer spending increased, the stock market was the strongest in history, and the country experienced a short-lived budget surplus. e. Defense and international programs were identified as the only two areas of potential spending cuts.