An investor can write any size contract in both forward and futures markets as long as the other party involved is in agreement
Indicate whether the statement is true or false
FALSE
Explanation: This is true only for forward market, but not for futures.
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If black markets help people meet their needs, they will tend to ________ created by the restrictive government policies
A) increase the absolute advantage B) reduce the deadweight losses C) reduce the cooperative surpluses D) increase the tax revenues
Which factor would cause a movement along the demand curve for pizza?
A) an increase in the number of students in town B) a renewed preference for Italian food C) a drop in the price of pizza D) an increase in average income
Which of the following is a danger of high rates of inflation
What will be an ideal response?
The basic classical model can account for the procyclical behavior of money if there
A. is reverse causation from future output to money. B. are rational expectations among the public. C. are propagation mechanisms in the economy. D. are real business cycles caused by productivity shocks.