Suppose a fashion designer wins a bid to design clothes for the characters of a movie. During his work he finds out that the payment he receives would not only cover his production costs but also earn him profits. The producer of the movie can be said to be facing a winner's curse

Suppose that the government decided to increase interest rates in order to encourage saving. Would this likely lead to an increase in investment and higher future economic growth rates? Explain.

What will be an ideal response?

The Core Personal Consumption Expenditures Index

A. strips out the cost of food and energy from the PCE. B. also includes producer prices (like the cost of iron ore). C. only includes food and energy. D. includes all goods and services people buy (not just what "average" people buy).