What to do if a dollar is not a dollar?
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Axel F. A. Adam-MΓΌller
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Article
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2002
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John Wiley and Sons
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English
β 123 KB
π 2 views
## Abstract An entrepreneur faces two types of risk: one from income generation, one from income spending. His income from firm profits is risky due to output price fluctuations and other risks. As a consumer, he is also exposed to inflation risk since he maximizes expected utility of real income.