If a foreign exchange speculator expects the spot rate of the dollar nine months from today to be lower than today's forward rate on the dollar for delivery in nine months, she may
A) buy dollars in the spot market nine months from today.
B) sell dollars in the spot market nine months from today.
C) sell dollars forward today and buy them in the spot market nine months from today.
D) buy dollars forward today and resell them in the spot market nine months from today.
C
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There is no free lunch means
A) each action has a cost. B) each choice involves a free item. C) each decision has elements of free goods in it. D) if you get your lunch paid for by someone else, it is free, but if you have to pay, it is not free. E) if you are invited to lunch by someone, you are not expected to pay for it.
The In the news article titled "Gas Prices Jump in Matthew's Wake" suggests gasoline prices increased a s a result of damage caused by Hurricane Matthew. When the availability of gasoline decreases as a result of this damage the supply curve shifts to the left, causing
A. Consumers pay lower prices as they decide to drive less. B. The price of gasoline to move up along the market supply curve C. The price of gasoline to move up along the market demand curve. D. A surplus to exist at the original equilibrium price.
Why might economic policies aimed at stabilization actually increase the magnitudes of economic fluctuations?
What will be an ideal response?
Answer the following questions true (T) or false (F)
1. "The distribution of income should be determined by the government" is an example of a positive economic statement. 2. Policies based on positive economic ideas tend to decrease economic efficiency and reduce equity. 3. "A decrease in the price of digital cameras will decrease the demand for camera film." This statement is an example of a positive economic statement.