Arbitrage creates profits but has no effect on prices
Indicate whether the statement is true or false
False
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During which of the following periods was growth in GDP per capita the strongest?
A) prior to 500 A.D. B) 500 A.D. to 1800 A.D. C) 1800-1900 A.D. D) 1900-2000 A.D.
In the real intertemporal model, an adverse sectoral shock acts to
A) reduce real output and reduce the real interest rate. B) increase real output and increase the real interest rate. C) increase real output and reduce the real interest rate. D) reduce real output and increase the real interest rate.
The goal of libertarianism is to
a. redistribute income based on the assumption of diminishing marginal utility. b. redistribute income in order to maximize the well-being of the worst-off person in society. c. punish crimes and enforce voluntary agreements but not to redistribute income. d. measure happiness and satisfaction.
If the U.S. interest rate is 5% and the interest rate in Germany is 2%, and the euro is expected to appreciate by 2% over the next year, then investors would:
a. sell dollars in the spot market. b. buy euros. c. seek to invest in the United States. d. seek to invest in Germany.