Refer to the scenario above. Robert should use ________ to play this game.
A) forward induction
B) backward induction
C) mixed strategies
D) his dominated strategy
Question 2
In the above figure, when the interest rate is 8 percent and household income is 40,000, household consumption is
A) 0.
B) 20,000.
C) 35.000.
D) 60,000.
