In a simultaneous game where both players prefer doing the opposite of what the opponent does, a Nash equilibrium does not exist
Indicate whether the statement is true or false
False. There are two Nash equilibria. In each, the two players are doing the opposite of one another. The problem is, it is difficult to know which equilibrium is achieved without some form of collusion.
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If the demand is ________, a fall in price ________ total revenue
A) elastic; increases B) elastic; decreases C) inelastic; increases D) inelastic; does not change
When attempting price regulation, a government faces what problem(s)?
A) limited information B) bribes C) uncooperative firms D) All of the above.
In the 19th century, when crop failures often led to bank runs, banks would make relatively fewer loans and hold relatively more excess reserves. By itself, these actions by the banks should have
a. increased the money multiplier and the money supply. b. decreased the money multiplier and increased the money supply. c. increased the money multiplier and decreased the money supply. d. decreased both the money multiplier and the money supply.
Which of the following statements is true?
A. A random walk process is stationary. B. The variance of a random walk process increases as a linear function of time. C. Adding a drift term to a random walk process makes it stationary. D. The variance of a random walk process with a drift decreases as an exponential function of time.