Which of the following statements concerning speculators is true?
a. There is no risk involved in speculative activity.
b. They simultaneously buy and sell a currency in different markets.
c. They hope to profit by trading a currency at a different exchange rate later.
d. Their actions do not affect exchange rates.
e. Their actions are exactly like those of arbitrageurs.
C
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What will be the principal and most immediate effect on the supply or demand for raw cotton grown in the United States if the demand for peanuts (which can be grown on cotton land) increases?
A) Decrease in demand B) Decrease in supply C) Increase in demand D) Increase in supply
A decrease in the price level, holding the nominal money supply constant, will shift the LM curve
a. upward and to the right. b. downward and to the left. c. downward and to the right. d. upward and to the left.