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:

United States

A country in North America consisting of 50 states and a federal district, known for its significant influence on global culture, economy, and politics.

Jury

A group of people sworn to render a verdict or true answer on a question officially submitted to them in a court of law.

Criminal Trial

A legal process in which a court examines the evidence to determine whether the defendant committed the criminal offence with which they are charged.

Deliberation

The process of carefully considering or discussing different options before making a decision.