Bill and Ted are deciding what musical instruments they want to learn to play for their band. They can pick between the guitar, keyboard, and the drums. They both want to have a good band, but also each has a preference over what toplay. Both like the drums over all else. However, Bill likes the keyboard more thanthe guitar and Ted likes the guitar more than the keyboard. What is crucial is that each chooses a different instrument, otherwise the band is pretty terrible. The actual combination does not affect the quality of the band. One night, Bill and Ted simultaneously reveal to each other what instrument they have bought decided to learn. Since they bought the instrument they are committedto learning it! Given the information above, 1. Does either Bill or Ted have a dominant/dominated strategy? Explain.
2. If Bill picks the keyboard, is it a best response for Ted to pick the drums? Explain.
3. If Ted picks the guitar, is it a best response for Bill to pick the keyboard? Explain.
4. Can there exista Nash equilibrium in which Bill picks the drums and Ted picks the keyboard? Explain.
5. Can there exist a Nash Equlibrium in which Bill picks the guitar and Ted picks the drums? Explain.

Suppose that xtel currently is selling at $40 per share. you buy 500 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker. the rate on the margin loan is 8%. a. what is the percentage increase in the net worth of your brokerage account if the price of xtel immediately changes to (a) $44; (b) $40; (c) $36? (leave no cells blank - be certain to enter "0" wherever required. negative values should be indicated by a minus sign. round your answers to 2 decimal places.) b. if the maintenance margin is 25%, how low can xtel’s price fall before you get a margin call? (round your answer to 2 decimal places.) c. how would your answer to requirement 2 would change if you had financed the initial purchase with only $10,000 of your own money? (round your answer to 2 decimal places.) d. what is the rate of return on your margined position (assuming again that you invest $15,000 of your own money) if xtel is selling after one year at (a) $44; (b) $40; (c) $36? (negative values should be indicated by a minus sign. round your answers to 2 decimal places.) e. continue to assume that a year has passed. how low can xtel’s price fall before you get a margin call? (round your answer to 2 decimal places.)

3. describe the purpose of the sec. (1-4 sentences. 2.0 points)

Your grandmother told you a dollar doesn't go as far as it used to. she says the purchasing power of a dollar is much lesser than it used to be. explain what she means. try and use and explain terms like inflation and deflation in your answer.