Which of the Following Is an Argument Used by Keynes

question 10

Multiple Choice

Which of the following is an argument used by Keynes and Hicks?

• A) If hedgers hold long positions and speculators holds short positions, the futures price will tend to be higher than the expected future spot price
• B) If hedgers hold long positions and speculators holds short positions, the futures price will tend to be lower than the expected future spot price
• C) If hedgers hold long positions and speculators holds short positions, the futures price will tend to be lower than today's spot price
• D) If hedgers hold long positions and speculators holds short positions, the futures price will tend to be higher than today's spot price

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Definitions:

Sea Surface Temperature

The temperature of the surface layer of the ocean, which is vital for climate studies, marine biology, and weather forecasting.

Poles

The two extremities of the Earth's axis, known as the North Pole and South Pole, characterized by extreme weather conditions.

Thermohaline Conveyor

A global circulation pattern in which ocean currents transport warm and cold water masses around the globe, driven by differences in temperature and salinity.

North Pacific

A region of the Pacific Ocean extending from the Equator to the Arctic Ocean, bounded by Asia and the Americas.