Examlex
We would expect which of the following to occur when the central bank conducts an open market purchase of bonds?
Risk-neutral
An attitude towards risk where an individual does not prefer or avoid risk, being indifferent between a certain outcome and a gamble with the same expected value.
Fair Bet
A gamble or bet in which the expected value of the winnings equals the cost of playing, indicating no advantage for the bettor or the house.
Risk-neutral
A situation or attitude wherein an individual or entity is indifferent to risk when making investment decisions.
Expected Utility
A concept in economics and game theory that predicts the utility an individual can expect when faced with uncertain outcomes.
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