A Nash Equilibrium in Game Theory Is Defined as a Situation

question 56

Multiple Choice

A Nash equilibrium in game theory is defined as a situation in which:

• A) no player has an incentive to change his or her strategy even when other players change.
• B) no player has an incentive to change his or her strategy unilaterally.
• C) any player has an incentive to change his or her strategy until he or she reaches the optimum.
• D) any player has an incentive to change his or her strategy even when other players remain unchanged.

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Definitions:

Marginal Propensity

The rate at which an individual, household, or economy is likely to consume (or save) with respect to an incremental increase in income.

Multiplier

An economic factor that quantifies the impact of increased spending in the economy, leading to a proportional increase in income and consumption.

Marginal Propensity

The proportion of an additional unit of income that is spent on consumption; a key concept in Keynesian economics related to how income changes affect spending.

Simple Multiplier

The Simple Multiplier is an economic concept that quantifies the impact of a change in investment, government spending, or other economic activity on total output or income.