As economic similarity rises, the stability costs of a common currency decrease because there are:

Explain the relationship displayed on the graph based on a risk level of X. Use the other capital letters on the graph to identify: (a) the average expected return for a risk-free asset; (b) the average expected return for a market portfolio with a risk level of X; (c) the compensation for time preference for a risk-free asset; and (d) the risk premium for the market portfolio’s risk level of X.

A supply curve generally

a. is a straight horizontal line. b. is a straight vertical line. c. slopes downward to the right. d. slopes upward to the right.