Most people buy insurance because they

Two companies, Acme and Pinnacle, each decide whether to produce a good quality product or a poor quality product. In the figure, the dollar amounts are payoffs and they represent annual profits for the two companies. The dominant strategy for Acme is to ________________

Fill in the blank(s) with the appropriate word(s).

Which of the following increases the size of the expenditure multiplier?

A) an increase in investment B) an increase in autonomous spending C) a decrease in the marginal propensity to consume D) a decrease in the marginal propensity to import E) an increase in the marginal income tax rate