If the price of a futures contract increases, then
A) the exchange will collect the amount of the increase from the seller of the contract and transfer it to the account of the buyer of the contract.
B) the exchange will collect the amount of the increase from the buyer of the contract and transfer it to the account of the seller of the contract.
C) the exchange will collect the amount of the increase from both the buyer and the seller and place it in escrow until the delivery date.
D) the additional funds will be required from either the buyer or the seller until the delivery date.
A
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The increase in the amount that the government collects in taxes when the economy expands and the decrease in the amount that the government collects in taxes when the economy goes into a recession is an example of
A) discretionary monetary policy. B) the discretionary multiplier effect. C) discretionary fiscal policy. D) automatic stabilizers.
According to Say's Law, in the aggregate
a. demand creates its own supply b. the production of output will generate exactly enough income to purchase what has been produced c. the economy is incapable of producing output fast enough to ensure full employment d. full employment cannot be sustained without government action e. consumer saving prevents the economy from reaching full employment
In the long run, firms in many industries often experience a falling average total cost curve as a result of:
A. gains through trade. B. increasing marginal returns. C. economies of scale. D. lower fixed costs.
If the deductible is $300 and the co-payment is 20%, on a covered expense of $800 the individual will pay ________, and their insurance company will pay ________.
A. $500; $300 B. $300; $400 C. $300; $500 D. $400; $400