The Arrow-Pratt measure of risk aversion is
A) negative if a person is risk averse.
B) greater than one if a person is risk averse.
C) negative if a person is risk loving.
D) None of the above.
C
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Short-run equilibrium exists
A) where the AD curve intersects the short-run aggregate supply (SRAS) curve. B) where the AD curve intersects the long-run aggregate supply (LRAS) curve. C) on the AD curve only. D) on the SRAS curve only.
The quantity theory of money implies that an increase in the money supply will ultimately:
A. affect only the level of real GDP; the price level will remain unchanged. B. increase the price level and leave real GDP unchanged. C. increase the price level and the level of real GDP. D. decrease the price level and the level of real GDP.
What is consumer equilibrium? How is it achieved?
Please provide the best answer for the statement.
If the Fed sells bonds through its open market operations, then there is
A. an increase in the supply of bonds and a fall in the price of existing bonds. B. a decrease in interest rates because of the increase in the supply of bonds. C. an increase in the demand for bonds and a rise in the price of existing bonds. D. a decrease in interest rates because of the decrease in the demand for bonds.