What asset is created by government, not sold on financial markets, not issued by financial intermediaries, and is held directly by savers?

Adriana wants to try working as an independent contractor this summer. She has a 50 percent chance that she will make $9,000 and 50 percent chance that she will make nothing. Her utility of wealth curve is shown in the figure above

What's Adriana's cost of risk? A) $2,500 B) $2,000 C) zero D) $40

When the economy enters into a recession, your employer is ________ to reduce your wages because ________

A) likely; aggregate demand is vertical in the long run B) unlikely; lower wages reduce productivity and morale C) likely; output prices always fall during recession D) unlikely; output and input prices generally fall during recession