Refer to the scenario above. Which of the following will happen in equilibrium if Harry is known to be trustworthy?
A) Tom will trust Harry and Harry will cooperate.
B) Tom will trust Harry and Harry will defect.
C) Neither of them will make any money.
D) Only Harry will make money.
A
Economics
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Suppose that Congress allocates $1 billion to clean up after hurricanes in 2016. It also raises taxes by $1 billion to keep the deficit from growing. If the marginal propensity to consume is 0.9, what is the effect on equilibrium GDP?
A) GDP increases by $900,000. B) GDP increases by $10 billion. C) GDP increases by $1 billion. D) GDP does not change.
Economics
What is the idea of fairness based on fair rules?
What will be an ideal response?
Economics