If Ann's utility function is U = W0.5, and she invests in a business which can yield $6,400 with probability 1/5, and $3600 with probability 4/5, then her risk premium to avoid bearing this risk is

In Figure 13-3 above, suppose that the Fed maintains a fixed real money supply and that commodity demand is also fixed. The range of shifts in the LM curve, LM1 to LM2 can then only be explained by

A) changes in the velocity of money. B) changes in the price level. C) changes in the demand for money. D) A and C.

If all consumers are uninformed about the quality of a product

A) firms can increase product by selling the same product under a different name at a different price. B) firms will not be able to price discriminate. C) firms will price discriminate. D) firms will increase profits by charging different prices for the same product.