In volatile markets, "speculators" would be expected to provide some stability because:
a. they will be required to do so by the government.
b. they will use current price moves to predict future moves.
c. they will buy when price is below equilibrium and sell when it is above equilibrium.
d. they will buy when price is above equilibrium and sell when it is below equilibrium.
c
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If households in the economy decide to take money out of checking account deposits and put this money into savings accounts, this will initially
A) decrease M1 and decrease M2. B) increase M1 and decrease M2. C) decrease M1 and not change M2. D) decrease M1 and increase M2.
As output expands beyond the break-even point, the vertical distance between the AVC and ATC will
A. get larger. B. remain constant. C. get smaller.
All of the following will decrease the demand for labor by firms in an industry except
A. a decrease in the prices of inputs that complement labor. B. a decrease in the demand for the product produced by the industry. C. a decrease in the price of the product produced by the industry. D. a decrease in the prices of inputs that substitute for labor.
The forward exchange rate:
a. allows investors to be sure of the price at which they can trade forex in the future. b. is the rate at which a trader can purchase currency for immediate delivery. c. is the rate of discount that international banks get when they purchase. d. is the rate that speculators consider if they are looking for bargain prices .