Actuarily fair insurance reduces risk without changing the expected value of a gamble.
Answer the following statement true (T) or false (F)
True
Rationale: This is in fact the definition of actuarial fairness.
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As Betsy's consumption of coffee increases, her marginal utility from coffee
A) increases. B) decreases. C) remains unchanged. D) increases first and then decreases.
According to the interest rate effect, a decrease in the price level will
A) decrease the real value of money balances, which causes total planned real expenditures to increase. B) cause interest rates to fall, which generates an increase in borrowing, so that total planned real expenditures increase. C) lead to a decrease in net exports, which causes total planned real expenditures to decrease. D) increase the real value of money balances, which causes interest rates to increase, thereby reducing total planned expenditures.
The main duty of the Environmental Protection Agency (EPA) is to: a. assure safe work places
b. prevent crime. c. enforce environmental standards. d. regulate air transport. e. regulate rates charged by generators of nuclear energy.
When the demand for a currency permanently increases, that nation's central bank can maintain its fixed exchange rate indefinitely
Indicate whether the statement is true or false