The chain store paradox of an incumbent who accommodates a finite stream of potential entrants threatening to enter sequentially numerous markets illustrates

Figure 19-3 ? Of the graphs in Figure 19-3, where the dotted line shows the actual exchange rate, which one shows a country with an overvalued currency and a balance of trade deficit?

A. 1 B. 2 C. 3 D. 4

Assuming the standard assumptions, in a repeated-play ultimatum game, the first player's best strategy in the last round is to:

A. split the money evenly with a bit more going to him or herself. B. take all the money for oneself. C. give the most money to the opponent. D. give the most money to oneself.