In repeated games, all of the following allow a firm to escape an inefficient "prisoners dilemma" equilibrium except
a. Be nice, don't strike first
b. Respond immediately to non-cooperation
c. Punish competitors as much as you can
d. Make sure your competitors can easily interpret your actions
c
Economics
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Fiscal policy makers may indirectly control the money supply if
A) they vote to "print" more dollars B) the Fed targets interest rates C) the Fed "prints" money as cyclical deficits increase D) the budget deficit is a structural deficit
Economics
The substitution effect occurs when a good becomes more expensive and people seek out alternative goods
a. True b. False Indicate whether the statement is true or false
Economics