If Virtually All Speculators Buy a Currency Just Before What

question 23

Multiple Choice

If virtually all speculators buy a currency just before what would be the cyclical low points in the currency's value without speculative activity, this speculation is likely to be__________ with respect to its impact on the amplitude of the cycle; if the speculators Sell the currency just before what would otherwise be the high values of the currency During its fluctuations, this speculation __________ in its impact on the amplitude of the Cycle..

• A) destabilizing; also is likely to be destabilizing
• B) destabilizing; is likely to be stabilizing
• C) stabilizing; is likely to be destabilizing
• D) stabilizing; also is likely to be stabilizing

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Definitions:

Net Taxes

The difference between total taxes paid and government transfers received, representing the actual tax burden on an individual or business.

Shifted

Refers to a change in position or direction, often used in economics to describe movements in supply or demand curves.

Sales Tax

A tax imposed on sales of goods and services, typically calculated as a percentage of the purchase price and collected by the retailer.