Most economists believe that
a. speculation on financial markets reduces their efficiency and should either be abolished or heavily regulated.
b. speculation on financial markets does not need to be regulated because it has been largely eliminated by regulations on program trading.
c. speculation socially benefits financial markets but harms nonfinancial markets.
d. speculation helps both financial and nonfinancial markets function more efficiently.
d
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Explain the difference between a change in quantity supplied and a change in supply
What will be an ideal response?
The domestic currency price of a representative domestic expenditure basket is
A) P, the domestic price level. B) E, the nominal exchange rate. C) P times E, the domestic price level times the domestic price level. D) P , the foreign price level. E) P times E, the foreign price level times the nominal exchange rate.
A shortage occurs when price is higher than the market equilibrium
a. True b. False Indicate whether the statement is true or false
If pollutants emitted by firms in the steel industry increase, but there is no increase in the costs borne by these firms, you could conclude that
a. pollution is not a serious problem in this industry. b. the consumers of steel are unwilling to bear the costs of pollution generated from steel production. c. pollution is an externality in this market, since producers and purchasers of steel do not bear the full costs of the pollution. d. pollution creates an external benefit rather than an external cost in this case.