During periods of hyperinflation, which of the following is the most likely response of consumers?
a. Save as much as possible.
b. Spend money as fast as possible.
c. Invest as much as possible.
d. Lend money.
b
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Capital gains are taxed at a different rate than income and this reduces revenues the government receives. All else equal, what would happen if capital gains taxes were eliminated?
A) They would have to be replaced by a consumption tax. B) The government would not be able to spend money on any programs. C) Everyone would have to pay less in taxes. D) The deficit would increase because of lack of revenues.
Suppose you sold 20 futures contracts at a price of $5.00 per bushel and suppose the maintenance margin is $1300 per contract. At the end of the first trading day when the price fell from $5.00 to $4.80 per bushel, the amount of the margin call you had to make is
A. $0 B. $10,000 C. $20,000 D. $6,000.