Suppose that in October, market analysts predict that the price of platinum will fall in November. What happens in the platinum market in October, holding everything else constant?
A) The demand curve shifts to the right.
B) The supply curve shifts to the right.
C) The supply curve shifts to the left.
D) The quantity of platinum demanded and the quantity of platinum supplied both increase.
B
You might also like to view...
Since the 1970s, the M1 demand for money has been
A) relatively stable. B) unpredictable. C) constant. D) unmeasurable.
A heuristic is a:
A. positive-framing method. B. mental shortcut that helps us make decisions. C. method to increase the price of your vices. D. formal policy used by firms to drive employee behavior.
Which of the following observations is true?
a. State governments are the shareholders of the Fed. b. The Fed chairman is appointed for a ten year term. c. FOMC decisions largely determine short-term interest rates. d. Member banks proportionately share all of Federal Reserve's profits.
When uncovered interest parity holds, it means that
A. the exchange rate risk is unusually high. B. a currency is expected to appreciate by as much as its interest rate is higher than the interest rate in the other country. C. a currency is expected to appreciate by as much as its interest rate is lower than the interest rate in the other country. D. the forward premium equals the interest rate differential.