This sequential game illustrates a

A Nash equilibrium occurs when ________

A) each player has a dominant strategy B) none of the players has a dominant strategy C) each player can increase his payoff by choosing a different strategy D) none of the players can increase their payoffs by choosing a different strategy

Which of the following most clearly states the "paradox of thrift"?

a. If households simultaneously attempt to increase their savings, the result may be a reduction in demand, output, and total savings. b. A strong, healthy economy can be achieved if most households are heavily in debt. c. A high savings rate will provide the funds for investment, which is a driving force of long-term economic growth. d. A reduction in savings and an increase in consumption will expand output and employment.