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The Table Below Shows the Number of Years of Jail

question 56

Multiple Choice

The table below shows the number of years of jail time that two burglars, Alf and Doug, will receive, depending on whether each decides to confess and implicate his partner, or to remain silent.

Doug’s Strategies Alf’sStrategies  Confess  Don’t  Confess  Confess  Doug: 4  A.f: 4 Doug: 9 A.f: 0  Don’t  Doug: 0  Doug: 1  Confess  Alf: 9 A.f: 1 \begin{array}{}& \text {Doug's Strategies }\\ \text {Alf'sStrategies }&\begin{array} { |l|c|c| } \hline & \text { Confess } & \begin{array}{c}\text { Don't } \\\text { Confess }\end{array} \\\hline \text { Confess } & \begin{array}{c}\text { Doug: 4 } \\\text { A.f: } 4\end{array} & \begin{array}{c}\text { Doug: } 9 \\\text { A.f: 0 }\end{array} \\\hline \text { Don't } & \text { Doug: 0 } & \text { Doug: 1 } \\\text { Confess } & \text { Alf: } 9 & \text { A.f: 1 } \\\hline\end{array}\\\end{array}
-If each prisoner independently chooses the strategy that minimizes their possible jail time,then they:


Definitions:

Loanable Funds

The total amount of funds available for borrowing in the financial market, influenced by savings and investments.

Investment Spending

Expenditures made by businesses or individuals on capital goods, which are intended to create future benefits such as increased production or revenue.

Interest Rate

The segment of a loan accruing interest costs to the borrower, commonly presented as a yearly percentage of the ongoing loan total.

Interest Rate

The cost of borrowing money, typically expressed as an annual percentage of the principal.

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