The last $2,000 of Rolanda's wealth adds less to her utility than the previous $2,000 . Based on this information, Rolanda has
a. increasing marginal utility of wealth and is risk averse.
b. increasing marginal utility of wealth and is not risk averse.
c. decreasing marginal utility of wealth and is risk averse.
d. decreasing marginal utility of wealth and is not risk averse.
c
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Demand deposits are termed so because:
A) depositors can withdraw money from such deposits at any point of time. B) there are no limitations on the amount of money that can be deposited into such accounts. C) depositors can demand any rate of interest on such deposits. D) most consumers want to open such accounts as they are greatly in demand.
The permanent income hypothesis indicates that increased savings will cause an increase in long term income
a. True b. False Indicate whether the statement is true or false