The futures price
A) reflects traders' expectations of the spot price on the day of delivery.
B) is always above the spot price on the day of delivery.
C) is always below the spot price on the day of delivery.
D) is always equal to the spot price at every point in time.
A
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The cross-price elasticity between a pair of complementary goods will be
A) positive. B) negative. C) zero. D) positive or zero depending upon the strength of the relationship.
As a result of the recent financial crisis, some analysts believed that the MPC in the U.S. declined. If this is true, the value of the multiplier is now
A. smaller. B. larger. C. the same. D. magnified to a larger amount.
The excess burden of an excise tax is
a. greater the more inelastic the supply curve. b. greater the more elastic the demand curve. c. smaller the more elastic the supply curve. d. greater the more inelastic the demand curve.
Which of the following conditions is characteristic of a monopolistically competitive firm in short-run equilibrium?
a. P = AR b. MR = MC c. P > MC d. All of the above are correct.