A weak home currency may not be the perfect solution to correct a balance of trade deficit because
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Ответ:
foreign companies may reduce the prices of their products to stay competitive.
Ответ:
The correct answer is risk averse.
Explanation:
A risk-averse person is a person who tries to minimize risk. Such people, when faced by two alternative decisions, choose the one with less risk. Such people are said to be having a low-risk tolerance.
Here, Tom is facing two decisions. One involves spending $250 and other involves the risk of spending up to $400. Tom will choose the former or less risky option because he is risk-averse and prefers to reduce risk.