A horizontal LM curve implies that the expenditure multiplier, when compared with the simple Keynesian expenditure multiplier, is

Suppose two companies, Macrosoft and Apricot, and considering whether to develop a new product, a touch-screen t-shirt. The payoffs to each of developing a touch-screen t-shirt depend upon the actions of the other, as shown in the payoff matrix below (the payoffs are given in millions of dollars).  Suppose Apricot makes its decision first, and then Macrosoft makes its decision after seeing Apricot's choice. What will happen if, before Apricot chooses, Macrosoft announces that it is going to develop a touch-screen t-shirt no matter what Apricot does?

A. Neither Apricot nor Macrosoft will develop a touch-screen t-shirt because they will both realize that they are in a no-win situation. B. Apricot will develop a touch-screen t-shirt, and Macrosoft will not because Macrosoft's threat is not credible. C. Macrosoft will develop a touch-screen t-shirt, and Apricot will not because it's not in Apricot's interest to develop a touch-screen t-shirt if Macrosoft also develops one. D. Both Apricot and Macrosoft will develop a touch-screen t-shirt because neither company will want to back down.

When considering choice architecture, a nudge:

A. can sometimes accomplish public policy goals in a less expensive way than traditional methods. B. presents choices that are similar to participants' ideal choices, but are slightly better than them. C. is a deliberate push by choice architect to get all people to behave a certain way. D. allows participants to choose among only choices that are good for them.