Speculators Profit by Taking Risks, While the Actions of Arbitrageurs

question 108

True/False

Speculators profit by taking risks, while the actions of arbitrageurs involve no risk.

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Definitions:

45 Degree Line

A reference line in economic graphs that represents where the value of the independent variable is equal to the value of the dependent variable.

Income

The money received, usually from a job, business, or assets, over a certain period of time.

Income Distribution

The way in which total income is shared among the population or different segments of the economy.

Unequal

Lacking equality in size, quantity, or degree; not evenly distributed or balanced.