Suppose it is February, and a speculator believes that the demand for corn in March will be higher than everyone else expects. In this situation, the speculator will
a. bid down the price of March futures contracts.
b. bid down the spot price of corn.
c. give suppliers an incentive to sell more corn in February.
d. buy March futures contracts.
d. buy March futures contracts.
You might also like to view...
Exports are:
A) positively related to the level of foreign income and negatively related to the exchange rate. B) positively related to the level of foreign income and positively related to the exchange rate. C) negatively related to the level of foreign income and negatively related to the exchange rate. D) negatively related to the level of foreign income and positively related to the exchange rate.
In the early 2000s, banks lowered lending standards to comply with the Community Reinvestment Act
Indicate whether the statement is true or false
Which of the following is the formula for marginal revenue?
a. MR = ?AR x ?q b. MR = ?AR ÷ ?q c. MR = ?TR ÷ ?q d. MR = ?TR x ?q
Exhibit 20-1 Money market demand and supply curves
?
As shown in Exhibit 20-1, assume the money supply curve shifts leftward from MS1 to MS2 and the economy is operating along the intermediate segment of the aggregate supply curve. The result will be a:
A. higher investment, lower real GDP, and lower price level. B. lower investment, lower real GDP, and lower price level. C. higher investment, higher real GDP, and higher price level. D. higher interest rate and no effect on real GDP or the price level.