When there is political instability in another country, the United States can expect
A. a decrease in the balance of payments due to a decrease in official reserve transactions.
B. an increase in the financial account balance due to the movement of assets to the U.S.
C. an increase in the financial account balance due to an increase in the current account.
D. a decrease in the balance of payments due to a decrease in the demand for goods and services.
Answer: B
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Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D1 and S2 (point B)
If there is an increase in number of companies producing motorcycles and a decrease in income (assume motorcycles are a normal good), the equilibrium could move to which point? A) A B) B C) C D) E
A coordination game
A) is a game with multiple Nash equilibria where players can credibly coordinate to select one of the equilibria. B) is a game where players coordinate to maximize joint profits. C) cannot be solved with cheap talk. D) always has one Nash equilibrium and no dominated strategies.