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

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Definitions:

Coupon Payments

Periodic interest payments made by a bond issuer to its bondholders, usually on an annual or semi-annual basis.

Sold at a Discount

refers to selling something for less than its usual or advertised price, often to encourage quick sales or because the item is slightly damaged or outdated.

Revolving Credit

A credit line allowing the borrower to use, repay, and reuse funds up to a certain limit.

Guaranteed Line

A credit line that is assured to be available to the borrower by the lender, typically used to ensure liquidity for businesses.