The "Bid-Ask Spread" Is

question 47

Multiple Choice

The "bid-ask spread" is:

• A)always equal to zero.
• B)the gap between the price at which a dealer buys and sells a security.
• C)the difference between the quantity a dealer wants to buy and what he actually buys.
• D)the difference between the rate of inflation and the expected rate of inflation.

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Definitions:

Total Spending

The aggregate expenditure on goods and services in an economy over a specific period, including consumer spending, government spending, and investment spending.

Price-Inelastic

A characteristic of a product or service when consumers’ demand does not change significantly with a change in its price.

Agricultural Product

Any type of product, including food, fibers, fuels, and raw materials, that is derived from farming and ranching.

Price Elasticity of Demand

A determination of demand's sensitivity to pricing shifts of a product.