Which of the Following Is Correct

question 7

Multiple Choice

Which of the following is correct?

• A)The short-run,but not the long-run,aggregate supply curve is consistent with the idea that nominal variables do not affect real variables.
• B)The long-run,but not the short-run,aggregate supply curve is consistent with the idea that nominal variables do not affect real variables.
• C)The long-run and short-run supply curves are both consistent with the idea that nominal variables affect real variables.
• D)Neither the long-run nor the short-run aggregate supply curve is consistent with the idea that nominal variables affect real variables.

Assess whether an individual is risk-averse based on their utility function.

Calculate the expected utility for different financial decisions under uncertainty and determine preferences based on utility maximization principles.

Understand and apply the concepts of present value and how interest rates affect investment decisions and the value of future payments.

Identify strategies for individuals to reduce financial risk and apply concepts of risk aversion in personal financial planning.