-When Consumption Is 4,000

question 189

Multiple Choice

-When consumption is 4,000

• A)disposable income is 4,000.
• B)savings is zero.
• C)disposable income is equal to consumption.
• D)All the choices are true.

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Definitions:

Probability

An indication of how probable an event is to happen, represented numerically between 0 and 1, with 0 meaning it cannot happen and 1 meaning it is certain to happen.

Risk Loving

A financial term describing an individual or entity's preference for taking risks, where the potential for higher gains outweighs the possibility of losses.

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1.

Expected Utility Maximizer

An economic theory that assumes individuals choose among risky alternatives in such a way as to maximize their expected utility.