Multiple Choice
If Cara's utility falls more by losing $600 than it rises by gaining $600,she has
A) increasing marginal utility of wealth and is risk averse.
B) increasing marginal utility of wealth but is not risk averse.
C) decreasing marginal utility of wealth and is risk averse.
D) decreasing marginal utility of wealth but is not risk averse.
Correct Answer:
Verified
Correct Answer:
Verified
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