The time it takes for an additional dollar of net government expenditures to work its way through the economy and have its full effect
A) is about one quarter of a year.
B) is between one and two years.
C) is not yet known precisely because little empirical research has been done on the question.
D) probably cannot be predicted from an examination of historical data.
D
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If the government has a spending flow that exceeds the revenues it collects, the government will run a ________ that year
A) surplus B) deficit C) debt D) debt and a deficit
Consider an antique auction where bidders have independent private values. There are two bidders, each of whom perceives that valuations are uniformly distributed between $100 and $1,000. One of the bidders is Sue, who knows her own valuation is $200. What is Sue's optimal bidding strategy in a first-price, sealed-bid auction?
A. Submit a bid that is less than $150. B. Submit a bid of $200. C. Submit a bid of $150. D. Yell "mine" when the bid reaches $150.