Suppose the game is infinitely repeated. What strategies will each firm utilize?
a. Firm A will charge a lower price and firm B will charge a lower price
b. Firm A will charge a higher price and firm B will charge a lower price
c. Firm A will charge a lower price and firm B will charge a higher price
d. Firm A will charge a higher price and firm B will charge a higher price
d
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New information ought not to influence economic decision-making if ________
A) consumers rely on rational expectations B) monetary policy changes C) monetary and/or fiscal policy changes D) that information has already been anticipated
Ken and Traci are two woodworkers who both make tables and chairs. In one month, Ken can make 3 tables or 18 chairs, whereas Traci can make 8 tables or 24 chairs. Given this, we know that the opportunity cost of 1 table is
a. 1/6 chair for Ken and 1/3 chair for Traci. b. 1/6 chair for Ken and 3 chairs for Traci. c. 6 chairs for Ken and 1/3 chair for Traci. d. 6 chairs for Ken and 3 chairs for Traci.
Economic stagnation coupled with high inflation is commonly called:
A. stagflation. B. inflationary stagnation. C. stagnatory growth. D. inflagnation.
If the Federal Reserve wished to increase interest rates using open market operations, it would
A. buy corporate stocks. B. buy US government securities. C. sell US government securities. D. buy gold.