-Using the Table Above, If the Current Market Value of

question 398

Multiple Choice

$$\begin{array} { | l | l | } \hline \text { Investor } & \begin{array} { l } \text { Expected future value of a } \\\text { dollar (francs per doll ar) }\end{array} \\\hline \text { Investor A } & 120 \\\hline \text { Investor B } & 100 \\\hline \text { Investor C } & 85 \\\hline\end{array}$$
-Using the table above, if the current market value of the dollar is 110 francs,

• A) investor C expects dollar depreciation, but A and B expect appreciation.
• B) all three investors expect the dollar to appreciate.
• C) investor A expects dollar appreciation, but B and C expect depreciation.
• D) all three investors expect the dollar to depreciate.

---

Definitions:

Commons Dilemma

A situation in which individuals' short-term selfish interests are in conflict with long-term group interests and common good.

Prisoner's Dilemma

A scenario in game theory in which two individuals acting in their own self-interest do not produce the optimal outcome for either party.

Ultimatum Game

A game in economic experiments where two players decide on how to divide a sum of money; the proposer suggests a division and the responder can either accept or reject it.

Entitativity

The degree to which a collection of people feels like a cohesive group.