If the Prisoners' Dilemma is repeated over and over again with the same two players having an indefinite time horizon,
a. the unique equilibrium is to play the Nash equilibrium of Rat each period.
b. players can cooperate on Silent if they are not too patient.
c. players can cooperate on Silent if they are patient enough.
d. players can only cooperate on Silent in the initial stages of the game.
c
Economics
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Sweep accounts which were created to avoid reserve requirements became possible because of a change in
A) deposit ceilings. B) technology. C) government rules. D) bank mergers.
Economics
Assume that the currency—deposit ratio is 0.5. The Federal Reserve carries out open-market operations, purchasing $1 million worth of bonds from banks. This action increased the money supply by $2 million. What is the reserve—deposit ratio?
A) 0.25 B) 0.35 C) 0.40 D) 0.50
Economics