Refer to the scenario above. Which among the following is a possible outcome if the number of bidders decreases to 45?
A) There will be no change in the outcome of the auction.
B) The optimal bid for Molly will now be $831.11.
C) The optimal bid for Molly will now be $745.
D) The optimal bid for Molly will now be $845.
B
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During the 1990s, Canada had an average inflation rate of 1.5 percent while Columbia had an average inflation rate of 21.5 percent. You would expect that nominal interest rates in Canada are
A) unpredictably different from nominal interest rates in Columbia. B) greater than nominal interest rates in Columbia. C) less than nominal interest rates in Columbia. D) not comparable to nominal interest rates in Columbia. E) equal to nominal interest rates in Columbia.
For the federal deficit to be lowered
A) the Federal Reserve must reduce the money supply. B) the federal government must decrease its spending and increase net exports. C) the federal government's expenditures must be lower than its tax revenue. D) the Federal Reserve must raise interest rates and lower the required reserve ratio.