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What tradeoff do agents make when they decide to Save or Invest?

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Final answer:

The tradeoff agents make when deciding to save or invest involves balancing return and risk.

Step-by-step explanation:

The tradeoff that agents make when deciding to save or invest is balancing return and risk. When agents save, they typically choose low-risk options such as bank accounts or bonds, which offer lower returns. On the other hand, investing involves taking on more risk in exchange for a potentially higher return. For example, investing in stocks or real estate can offer higher returns, but they also come with a higher risk of losing money.

User Eric Fortin
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