Define risk-loving behavior. What will be an ideal ...

[RODY.ELKHALIL]

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]

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.