The Project Sponsor ensures, that for each investment, the following studies are ...
Risk aversion is the behavior in someone when they are exposed to uncertainty and are unsure of something due to being uncertain about it.
In this case, reluctant for taking changes when making investment best describes risk aversion from an economics stand point. If someone isn't sure the return on investment they would get from investing or the risks associated with investing in something, they are more hesitant to do that.
Benefits- standing up for your self con- loosing time where you could be making money
Answer:
1. The increase in savings resulting directly from this change in income is $500
That is
Increase in savings = Increase in income minus increase in consumption
= 2000 - 1500
= $ 500
2.The marginal propensity to save (MPS) is calculated by dividing the change in savings by the change in income.
That is
ΔS/ ΔY,
Therefore given
Change in savings =ΔS =$500
Change in income =ΔY = $2000
MPS = 500/2000
MPS = 0.25
3.The marginal propensity to consume (MPC) is calculated by dividing change in consumption by changes in come.
That is ΔC / ΔY
Where ΔC = 1500
ΔY = 2000
Therefore MPC = 1500/2000
= 0.75
1. The increase in savings resulting directly from this change in income is $
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