Question

Question 541 pts

Which of the following statements is true?

Group of answer choices

A)Games with strictly dominant strategies do not guarantee that players achieve the highest available payoffs in Nash Equilibrium.

B) The prisoners’ dilemma game has no strictly dominant strategy.

C) If a two-player game has a strictly dominant strategy for one player, then it must have a strictly dominant strategy for the other player.

D) If a strategy is weakly dominant, then it is also strictly dominant.

E) None of the other answers is correct.

Question 551 pts

At the zero lower bound:

Group of answer choices

A) The Reserve Bank has no tools to provide further economic stimulusA

B) The Reserve Bank stops issuing further currency because people are unwilling to hold it.

C) The Reserve Bank targets an inflation rate of zero per cent per year

D) The Reserve Bank targets the money supply

E) None of the other answers is correct

Answer 1

54). The correct option is (c) and (d).

If a two-player game has a strictly dominant strategy for one player, then it must have a strictly dominant strategy for the other player.

D) If a strategy is weakly dominant, then it is also strictly dominant.

In game theory , strategy plays an important role . The strategies of one player have profound effect on the other players in the game.

55). The correct option is (a & d).

The Reserve Bank has no tools to provide further economic stimulus.

The Reserve Bank targets the money supply.

The reserve bank makes use of expansionary monetary policy. Zero-bound is the lower limit that rates can be cut to, but no further. When this level is reached, and the economy is still underperforming, then the central bank can no longer provide stimulus via interest rates. Economists use the term liquidity trap to describe this scenario.

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