Author Question: Ann and Lynn have been arrested by the police, who have evidence that will convict them of robbing a ... (Read 28 times)

lak · **on:** Jun 29, 2018

Ann and Lynn have been arrested by the police, who have evidence that will convict them of robbing a bank. If convicted, each will receive a sentence of 6 years for the robbery.

During questioning, the police suspect that Ann and Lynn are responsible for a series of bank robberies. If both confess to the series, each will receive 12 years in jail. If only one confesses, she will receive 4 years and the one who does not confess will receive 14 years. What is the equilibrium for this game? A) Both confess.
B) Ann confesses and Lynn does not confess.
C) Lynn confesses and Ann does not confess.
D) Neither confess.

Question 2

Using the data in the above table, if net exports = -500 billion and the government balances its budget, then

A) the private sector must balance its budget.
B) savings must equal 150 billion.
C) the private sector runs a surplus of 850 billion.
D) saving must equal 650 billion.