The above figure shows Bob's utility function. He currently has $100 of wealth, but there is a 50% chance that it could all be stolen. If Bob could keep $50 with certainty, his utility would be
A) a.
B) b.
C) c.
D) d.
B
You might also like to view...
When federal government expenditures exceed tax receipts, the Treasury must
A) expand the money supply. B) raise taxes. C) reduce spending. D) sell bonds.
A foreign bank receives a deposit of $10,000 from a U.S. citizen. As a result, there is a net capital outflow from the U.S., if ________
A) the bank buys a U.S.-made computer B) the bank buys a bond issued by a U.S. company C) the bank keeps the $10,000 in a vault D) all of the above E) none of the above
At equilibrium
A. quantity supplied is equal to quantity demanded. B. quantity demanded is greater than quantity supplied. C. quantity supplied is greater than quantity demanded.
Based on the table, the largest change in aggregate demand takes place during the ______.
a. change in government purchases
b. first change in consumption purchases
c. second change in consumption purchases
d. final change in consumption purchases