Futures Markets Are Often Good Predictors of What Will Happen

question 112

Multiple Choice

Futures markets are often good predictors of what will happen to the price of goods in the future because:

• A) speculators typically have better information than consumers.
• B) the markets are more complete.
• C) speculators have an incentive to "get it right" because their own money is on the line.
• D) the markets are highly regulated.

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