Author Question: Define risk-loving behavior. What will be an ideal response?[br][br][b][color=#7BCCB5]Question ... (Read 73 times)

RODY.ELKHALIL

  • Hero Member
  • *****
  • Posts: 591
Define risk-loving behavior.
 
  What will be an ideal response?

Question 2

What is meant by crowding out? Explain the difference between crowding out in the short run and in the long run.
 
  What will be an ideal response?



shailee

  • Sr. Member
  • ****
  • Posts: 392
Answer to Question 1

It refers to a person's preference for an uncertain deal over a certain deal with an equal expected value.

Answer to Question 2

Crowding out refers to a decline in private expenditures  consumption, investment, and net exports  as a result of an increase in government purchases. In the short run, an increase in government purchases results in partial crowding out of private expenditures, but in the long run, a permanent increase in government purchases results in the complete crowding out of private expenditures.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Thyroid conditions may make getting pregnant impossible.

Did you know?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

Did you know?

Amoebae are the simplest type of protozoans, and are characterized by a feeding and dividing trophozoite stage that moves by temporary extensions called pseudopodia or false feet.

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

For a complete list of videos, visit our video library