Lower real income ________ the demand for money and a lower price level ________ the demand for money.
A. decreases; decreases
B. increases; increases
C. increases; does not change
D. increases; decreases
Answer: A
Economics
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Jessica must choose option A or option B. Option A gives her $10,000 for sure. Option B gives her $5,000 if a fair coin toss shows heads and $15,000 if it shows tails. If Jessica is risk averse her utility of wealth curve becomes
A) flatter as her wealth increases and she will choose option A. B) flatter as her wealth increases and she will choose option B. C) steeper as her wealth increases and she will choose option A. D) steeper as her wealth increases and she will choose option B.
Economics
Why may the debt crisis be only "sleeping" rather than "dead?"
What will be an ideal response?
Economics