How should you set up the game tree, and can you explain why you set it up the way you did? What is the rollback equilibrium? Note that your answer will depend on the value of p.
Context:
Finally, we consider a version of the nomination problem that considers both strategy and uncertainty. As in part (b), the leaders make their decision about whom to support first, and the activists second. Also, the leaders prefer A, the activists prefer B. Additionally, there is uncertainty about whether B is a star or a dud, and the probability that B is a star is p. The leaders make their support decision before B's true political ability is revealed; the activists make their decision afterward. If the party unites behind A, the pay-offs are the same as in (c): a pay-off of 5 for the leaders and 3 for the activists. Similarly, if the party unites behind B and B is a star, the leader's pay-off is 3 and the activist's is 6. If they unite behind B and she is a dud, however, both get a pay-off of 1. If the party fails to unite, both players get a pay-off of 0 with one exception. If B turns out to be a star, the activists will find her candidacy so exciting that they will get a pay-off of 4 from supporting her even if the leaders have supported A (the leader's pay-off in this case is still 0.)
Re: Most Difficult: by Tania Jimenez - Tuesday, September 29, 2020, 9:44 PM Question 27: More interest and APY. Assume that a one-year CD purchased for $2000 pays in APR of Buthat is compounded quarterly. How much is in the account at the end of each compounding period? (Calculate the Interest and compound it each period rather than using the compound interest formula. ) How much total interest does it earn? What is the APYT Permalink Show parent7-HEconomic models do all of the following except A) answer economic questions B) portray reality in all its minute details. " make economic ideas explicit and concrete for use by decision makers. D) simplify some aspect of economic life. .7 Which of the following is a macroeconomic question? A) What determines the growth rate of gross domestic product? B) How is the production quantity of snowboards determined? C) What factors determine the price of electronic cigarettes? D) What determines the salaries of Wall Street executives?(a) The recovery of output after the Financial Crisis was the slowest ever observed in UK history. Many economists believe that this was due to the measures of austerity introduced by the government to reduce debt. George Osborne, the Chancellor of the Exchequer at the time, described the plan with which public debt should be reduced while at the same time stabilising output in the following way: Monetary activism to keep interest rates low and stimulate the economy. Fiscal respon sibility [i.e., fiscal contraction] to restore confidence and rebuild our battered public finances. Use the IS-LM-FX model to explain Osborne's plan. Contrary to Osborne's expectations, the economy was not stabilised, but contracted. Can you explain why? (40 marks) (b) The measures of austerity were primarily introduced because of the government's fear that the high level of government debt could result in a debt crisis akin to Greece. Is this likely to have happened without austerity? Discuss. (30 marks) (c) In the current low-interest rate environment, the Bank of England has implemented a number of unconventional monetary policy measures (e.g., quantitative easing). Is predicting how the exchange rate behaves as the result of unconventional monetary expansion more or less difficult than after a conventional monetary expansion? Discuss. (30 marks)1. Consider the following statements: A) car owners purchase more gasoline from a gas station that sells gasoline at a lower pr that other rival gas stations in the area B) banks do not take steps to increase security since they believe it is less costly to allow some bank robberies that to install expensive security monitoring equipment C) firms produce more of a particular DVD when its selling price rises Which of the above statements demonstrates that economic agents respond to incentives A. A only B. B only C. Conly D. A and B only E. A, B, and C 2. Society faces a tradeoff in all of the following situations except A. when deciding who will receive the goods and services produced B. when deciding what goods and services will be produced C. when deciding how goods and services will be produced D. when some previously unemployed workers find jobs 3. Which of the following is a positive economic statement? A. people should not buy SUVs B. the government should mandate electric automobiles C. scarcity necessitates that people make trade-offs D. foreign workers should not be allowed to work for lower wages that the citizens country 4. Which of the following is a macroeconomics question? A. what determines the inflation rate B. what determines the production of DVDs C. what factors determine the price of carrots D. what determines the wage of auto workersQuestion 28 You have $10,000 to invest in a bank certificate of deposit for 13 years. "Bank A" offers 11% interest compounded daily, "Bank B" offers 11.15% interest compounded monthly and "Bank C" offers 11.55% interest compounded annually. If you choose the right bank, how much will you have in your account 13 years later? O $44,442 O $53,754 $42,326 O $38,833 $41,778
