Bob invests $50 in an investment that has a 50% chance of being worth $100 and a 50% chance of being worth $0. From this information we can conclude that Bob is NOT
A) risk loving.
B) risk neutral.
C) risk averse.
D) rational.
C
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Which of the following programs involves the Federal Reserve directly purchasing short-term lending instruments from corporations?
A. Term Asset-Backed Securities Loan Facility. B. Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility. C. Commercial Paper Funding Facility. D. Term Securities Lending Facility.
Economists need different models of the economy because:
A. The economy behaves differently depending on how much time has passed after a demand shock B. We need a different model to analyze a positive demand shock than we need to analyze a negative demand shock C. The way economic performance is measured of changes over time D. Prices tend to be less flexible over time