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Business, 24.12.2019 22:31 lopezjose1530

Statement 1: on average and everything else held constant, consumers prefer deferred consumption spending to immediate spending. statement 2: on average and everything else held constant, an investment that can provide a 4% return should attract more investment capital from savers/investors than an otherwise identical investment that can generate a 12% return. statement 3: all things being equal, rational savers and investors prefer to invest in an asset that provides a 12% return rather than one that provides an 8% return. statement 4: all things being equal, savers and investors prefer more risk to less risk and prefer lower risk premiums on projects exhibiting higher levels of risk.

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