Multiple Choice
Refer to the following figure when answering the following questions.
Figure 16.1: Consumption Function
-Consider the utility functions in Figure 16.1. Curve b exhibits:
A) risk-taking behavior.
B) constant marginal utility.
C) diminishing marginal utility.
D) consumption smoothing.
E) None of these answers is correct.
Correct Answer:

Verified
Correct Answer:
Verified
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