Use the following graph for the federal funds market to answer the next question.A $25 billion increase in reserves will change the interest rate to ________.

The Council of Economic Advisers

a. was created in 1946. b. advises the president of the United States on economic policy matters. c. writes the annual Economic Report of the President. d. All of the above are correct.

Refer to the payoff matrix. Suppose that Alpha and Beta agree that they will both pursue a high-price strategy. If Beta then cheats on the agreement in order to increase profits, which of the following is true?

A.  If this is a repeated game, Alpha can be expected to pursue a low-price strategy in future games.
B.  If this is a one-time game, a Nash equilibrium will result.
C.  A Nash equilibrium cannot be reached through repeated playing of this game.
D.  The game is a negative-sum game.