At Equilibrium,arbitrage Profits Are

question 30

Multiple Choice

At equilibrium,arbitrage profits are:

• A)zero.
• B)maximized.
• C)difficult to predict.
• D)not possible and losses are probable.

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Definitions:

Business Cycle

The fluctuations in economic activity over time, characterized by periods of expansion (growth) and contraction (recession) in the economy.

Business Activity

The aggregate economic actions carried out by companies, including production, sales, and services, influencing the overall economic health.

Index of Leading Indicators

A composite of economic variables that predicts future economic activity, aiding in economic forecasting.

Recessions

Periods of temporary economic decline during which trade and industrial activities are reduced, generally identified by a fall in GDP in two successive quarters.