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Problem 1 (10%). (Russell and Norvig} The following payoff matrix shows a game between politicians and the Federal Reserve in the US: Fed: contract Fed:

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Problem 1 (10%). (Russell and Norvig} The following payoff matrix shows a game between politicians and the Federal Reserve in the US: Fed: contract Fed: do nothing Fed: expand M Pol idle The politicians can expand {increase spending) or contract (cut spending) scal policy {or stay idle), while the Fed can expand {lower interest rate] or contract [increase interest rate) monetary policy.r {or do nothing]. Find the Nash equilibria of this game

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