Indicate for each sentence whether it is true or false. Mark true with a T and false with a F. For each sentence, write a few words of justification.

Consider the multi-stage game reported below (Game 2), in which a Proposer moves first, and offers one of three possible splits of $10 to a Responder, who can either accept or reject the offered split. The possible outcomes are as indicated in the figure (the first payoff is that for the Proposer).

a. The Responder can choose among eight possible strategies. b. (1, 9) is a Nash equilibrium outcome. c. (9, 1) is the equilibrium outcome compatible with backward induction. d. The strategy (Reject, Accept, Reject) by the Responder is a credible threat for the Proposer. e. Nash equilibria found via backward induction must be supported by credible threats.