There is only one explanation for why economists give conflicting advice on policy issues, and it is that they have different values about what policy should try to accomplish

Assume you save $1,000 in a bank account that pays 8 percent interest per year and the inflation rate is 3 percent. At the end of the year you have earned

A) a nominal return of $50. B) a negative real return. C) a real return of $50. D) a real return of $80.

If the bidders at a first-price auction have true values of $78, $72, $66, and $65, the item will sell for

a. $78 b. just under $78 c. $72 d. just over $72