Refer to the Following Figure When Answering

question 75

Multiple Choice

Refer to the following figure when answering
Figure 16.1: Consumption Function
-Consider the utility functions in Figure 16.1 above. Curve b exhibits:

• A) risk-taking behavior
• B) constant marginal utility
• C) diminishing marginal utility
• D) consumption smoothing
• E) None of these answers are correct.

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