The winner's curse is more likely when the value of a good at auction is common knowledge

Suppose that the Federal Reserve Open Market Committee adheres to the ideas expressed by ________. If the economy moves into a recession, the Fed would recommend that the federal funds target rate decrease as long as the inflation rate did not rise above

the publicly announced goal for inflation. A) the gold standard B) the monetarist school of thought C) inflation targeting D) the Taylor Rule

Consider borrowers and lenders who agree to loans with fixed nominal interest rates. If inflation is higher than what the borrowers and lenders expected, then who benefits from lower real interest rates?

A. Only the borrowers benefit. B. Only the lenders benefit. C. Both borrowers and lenders benefit. D. Neither borrowers nor lenders.