If the Fed wishes to decrease the supply of money and credit, it may sell government securities, raise the discount rate, or lower required reserve ratios

When economists model a game with three players instead of two, what is different about the payoff matrix and the payoffs listed in each cell of the matrix?

What will be an ideal response?

Figure 11-3

In Figure 11-3, which line represents the change in the consumption schedule caused by a cut in fixed taxes?

a.
C₁ in graph (a)

b.
C₂ in graph (a)

c.
C₁ in graph (b)

d.
C₂ in graph (b)