In a common-value auction
a. No bidder knows what the exact value of the item being auctioned
b. Each bidder has only an estimate of the value of the item
c. The value is the same for each bidder
d. All of the above
d
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The crowding-out effect is
A) the tendency of expansionary fiscal policy to cause an increase in planned investment but not in planned consumption in the U.S. private sector. B) the tendency of contractionary fiscal policy to cause an increase in planned investment but a decrease in planned consumption in the U.S. private sector. C) the tendency of expansionary fiscal policy to cause a decrease in planned investment or planned consumption in the U.S. private sector. D) the tendency of contractionary fiscal policy to cause an increase in planned investment or planned consumption in the U.S. private sector.
The use of sensitivity analysis will generally result in
A) the calculation of a certainty equivalent NPV. B) the calculation of a best case, a base case and a worst case. C) the calculation of the coefficient of variation. D) the calculation of the probability of the maximum profit.