Use the Table Below to Answer the Following Questions

question 96

Multiple Choice

Use the table below to answer the following questions.
Table 14.2.1
-Refer to Table 14.2.1.This table shows the sentences that Bob and Joe will receive if convicted.They have been apprehended by the police under the suspicion of committing armed robbery.The two are immediately separated and questioned about the case.Which one of the following observations is correct?

• A)Bob would be smart to confess no matter what Joe does.
• B)Joe would be smart not to confess no matter what Bob does.
• C)Both Bob and Joe would be better off not confessing if they both do not confess.
• D)Both Bob and Joe would be better off "coming clean" and confessing to their crime.
• E)Both Bob and Joe have a dominant strategy of not confessing.

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Definitions:

Tax Rates

The percentage at which an individual or corporation is taxed.

Interest Rates

The price paid for the use of borrowed money or the earnings from an investment, represented as a percentage of the total amount invested or borrowed.

Consumer Durable

A category of consumer goods characterized by their long life span, such as appliances, vehicles, and furniture.

Business Investment

Expenditure made by businesses to purchase capital goods or services, aimed at furthering company growth and generating revenue.