Concerning an investment project which of the following is TRUE?
A) A risk-neutral individual is more likely to invest than a risk-averse individual.
B) A risk-neutral individual is more likely to invest than a risk-loving individual.
C) A risk-neutral individual is less likely to invest than a risk-averse individual.
D) Not enough information is given.
A
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What happens to the present value of $1 one year from now if the market rate of interest falls? Explain
What will be an ideal response?
Which of the following statements is correct?
A) Through autonomous monetary policy adjustments the Federal Reserve can ultimately determine the equilibrium real interest rate in the long run. B) Through autonomous monetary policy adjustments the Federal Reserve can ultimately determine potential output in the long run. C) Through autonomous monetary policy adjustments the Federal Reserve can target any inflation rate in the long run. D) all of the above E) none of the above