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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