Anna's Antiques expects to get two bidders for the unique china teacup it sells. Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability. If Anna holds an auction between the two customers, the expected value of this auction is

a. $70
b. $78
c. $85
d. $100

Economics

When does the Fed lend through discount windows?

What will be an ideal response?

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Economics

If the increase in government spending is $200 and the multiplier is 2.5, then the change in real gross domestic product will be _____

a. $200 b. $300 c. $500 d. $700

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Economics