A risk averse person has diminishing marginal utility of wealth

Indicate whether the statement is true or false


TRUE

Economics

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The real interest rate for investments reflects not only the short-term real interest rate set by the central bank, but also the financial frictions

When the policy rate has hit the floor of zero, to stimulate the economy at given inflation rates, policymakers can A) lower the financial frictions. B) lower the short-term real interest rate. C) lower both the short-term real interest rate and the financial frictions. D) lower the policy rate.

Economics

GDP per capita provides a reasonably accurate measurement of a country's income distribution

a. True b. False Indicate whether the statement is true or false

Economics

Collusion between two firms occurs when

A) the firms independently pursue strategies that could hurt each other. B) firms explicitly or implicitly agree to adopt a uniform business strategy. C) announce that each will match its rival's market price. D) firms act altruistically to bring about the economically efficient outcome.

Economics

The ratchet effect would suggest that:


Refer to the graph above.

Economics