If a Speculator Expects the Value of the Pound to Fall,then

question 30

True/False

If a speculator expects the value of the pound to fall,then that individual may establish a long position in pounds or a short position in dollars.

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Definitions:

Consumer Surplus

The shortfall between the total consumers are willing to contribute towards a good or service and the actual contribution.

Tax

A mandatory financial charge or a type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Producer Surplus

The difference between what producers are willing to sell a good for and the actual price they receive, representing a measure of producer welfare.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, reflecting the economic benefit to consumers.