Carry Trade Is a Kind of Speculation Whose Success Is

question 50

True/False

Carry trade is a kind of speculation whose success is based upon a belief that there will be no adverse movement in exchange rates.

---

Definitions:

Marginal Tax Rates

The rate at which the last dollar of a taxpayer's income is taxed, indicating the rate applied to each additional dollar of income.

Capital Gains

The profit realized from the sale of assets, such as stocks or real estate, that have increased in value over their purchase price.

Investment Expenditures

Investment expenditures refer to the spending on capital goods by firms that are intended to improve future production or purchases made by individuals in financial instruments or capital assets.

Supply-Siders

Economic theorists who believe that lower taxes, decreased regulation, and a reduced role of government in the economy will lead to increased production and supply, driving economic growth.