Recall Application 3, "Hyperinflation in Zimbabwe," to Answer the Following

question 11

Multiple Choice

Recall Application 3, "Hyperinflation in Zimbabwe," to answer the following questions:
-According to the application, if the US$12 lunch equals 1.1 trillion Zimbabwean dollars, then how many Zimbabwean dollars does it take to buy a US dollar?

• A) about 917 billion
• B) about 91.7 billion
• C) about 917 million
• D) about 9.17 billion

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Definitions:

Nash Equilibrium

A principle in game theory where each participant's tactic is the best given the tactics of others, and none of the players stand to benefit from altering merely their strategy.

Credible Threat

A declaration or action by a party that it will follow through with a particular response if certain conditions are met, believed to be feasible by the other party.

Warranty

A guarantee, typically made by a manufacturer or seller, to repair or replace a product within a specified period if it is found to be faulty.

Dominant Strategy

A strategy that always provides greater utility to a player, regardless of the opponent's strategy.