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Why are consumers considered to be risk averse

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Why are consumers considered to be risk averse? What methods could used to deal with risk? It has been said that a dollar received today is worth more than a dollar received tomorrow. What does this mean and what is the significance to the economy? What is the difference between the present value of a future sum of money and the future value of a present sum of money? What is the significance of these concepts to economics? If you deposited $1,000 in an account paying 6% interest compounded annually, how long would it take to double?

Reference no: EM131337348

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Why are consumers considered to be risk averse : Why are consumers considered to be risk averse? What methods could used to deal with risk? It has been said that a dollar received today is worth more than a dollar received tomorrow.
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