Speculators Act to Buy Low and Sell High

question 50

Multiple Choice

Speculators act to buy low and sell high.In so doing, they:

• A)smooth consumption instability across states of nature but not price instability.
• B)smooth price instability across states of nature but not consumption instability.
• C)smooth both consumption instability and price instability across states of nature.
• D)smooth neither price instability nor consumption instability across states of nature.
• E)can do any of the above depending upon whether the states of nature are temporally or geographically defined.

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Definitions:

Stanford-Binet Scale

A standardized test that measures intelligence and cognitive abilities in individuals, originally developed to identify educational needs in children.

Wechsler Intelligence Scale

A series of standardized tests used to evaluate cognitive abilities and intellectual potential across different age groups.

Gifted

A term used to describe individuals, often children, who show exceptional levels of aptitude or competence in one or more domains at an early age.

Artistic

Characterized by or pertaining to the expression or application of human creative skill and imagination, typically in visual or auditory forms.