If the bidders at a first-price auction have true values of $8, $7, $6, and $5, the item will sell for

When there is a threat of inflation in the economy, the Fed can ________ the federal funds rate so as to ________ aggregate demand and ________ the price level

A) lower; increase; decrease B) raise; decrease; increase C) lower; increase; increase D) raise; decrease; decrease E) raise; increase; decrease

Most state governments in the United States operate under constitutional provisions that severely restrict expenditures financed by borrowing

Suppose this were to change, so that state governments' access to credit markets was no different from the federal government. What consequences would you predict for the nation's aggregate debt burden?