A consumer who is risk neutral is best characterized as . Multiple Choice a. a consumer who prefers high risk regardless of expected gains b. a consumer who may accept a risky prospect even if the expected gain is negative c. a consumer who completely ignores risk and makes his or her decisions based solely on expected values d. a consumer who demands a positive expected gain as compensation for taking risk

Option D. A consumer who demands a positive expected gain as compensation for taking risk

Explanation:

The reason is that the risk neutral investors are neither risk averse who takes lesser risks nor risk takers. They take the risks that they think will increase their wealth with average risk levels and hence expect positive results and returns for taking this risk.

answer; (c) penalty

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi