Marylou, whose utility of wealth curve is shown in the figure above, faces two options. Option A yields her $200 for sure. Option B has a 0.4 probability of yielding $100 and a 0.6 probability of yielding $300. Marylou
A) picks option A.
B) picks option B.
C) is indifferent between option A and option B.
D) needs more information to make a choice.
A
Economics
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During an economic downturn, Keynes argued that firms would have ________ to increase spending because ________.
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