A person that is risk averse
A) exhibits decreasing marginal utility of wealth.
B) exhibits increasing marginal utility of wealth.
C) always engages in fair bets.
D) loves lotteries.
A
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Applying neoclassical theory to the housing market, ________ cause a decrease in the user cost of housing
A) higher expected household incomes B) higher rates of household formation C) increases in the expected relative price of housing D) tighter constraints on mortgage financing
How are the assets and liabilities changed for a bond dealer, the bond dealer's bank, and the Fed when the Fed buys $100,000 in bonds?
What will be an ideal response?
The phase out of the subsidies for the purchase of health insurance will increase the implicit marginal tax rate on earnings for which of the following groups?
a. The elderly. b. Individuals and families with incomes between 133 percent and 400 percent of the poverty level. c. Individuals and families with incomes of more than 400 percent of the poverty level. d. All workers employed by firms with fewer than 50 full-time employees.
Assuming prices and wages are fully flexible, the aggregate supply curve will be:
A. upward sloping, but not vertical. B. vertical. C. horizontal. D. downward sloping.