According to the Keynesian Model

question 218

Multiple Choice

According to the Keynesian model,

• A)wages are flexible because workers wouldn't otherwise be able to keep their jobs.
• B)the price level is somewhat fixed due to social forces, which keeps an economy from remaining at an equilibrium level of unemployment.
• C)prices are subject to significant fluctuations as demand and supply change.
• D)the government puts price controls on the economy, keeping the price level fixed.

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Definitions:

Uncovered Call

An uncovered call is an options strategy where the seller sells call options without owning the underlying securities, exposing the seller to unlimited risk.

Strike Price

The price at which a derivative contract can be exercised, specifically referring to the price at which the holder of an option can buy (call option) or sell (put option) the underlying asset.

Listed Options

Contracts traded on a stock exchange that give buyers the right, but not the obligation, to buy or sell a security at a specified price within a certain time period.

Post Margins

The practice of depositing collateral to cover potential losses in trading accounts, especially in futures and options markets.