A Macrohedge Is a Hedge of a Particular Asset or Liability

question 14

True/False

A macrohedge is a hedge of a particular asset or liability exposure to a change in a macroeconomic variable.

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Definitions:

Demand Elasticity

Measuring the impact of price swings on the volume of a good that consumers seek to purchase.

Inelastic Demand

A market condition where the demand for a product does not change significantly when its price changes.

Elastic Supply

Describes a situation where the quantity supplied of a good changes significantly when its price changes.

Tax Burden

The measure of the financial charge or impact of taxes on an individual or a corporation.