Question: =+B. Suppose that the function u1x2 5 ln x allows us to express your tastes over gambles as expected utilities. Also, suppose again that your

=+B. Suppose that the function u1x2 5 ln x allows us to express your tastes over gambles as expected utilities. Also, suppose again that your income during expansions is eE and your income during recessions is eR

, with eE . eR

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