How can a bond investor hedge against a possible bear market in bonds?
A) sell futures contracts on Treasury notes
B) buy futures contracts on Treasury notes
C) going long in the spot market
D) going short in the spot market
A
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Assume goods X and Y are substitutes. An increase in the price of X would cause the demand for Y to increase
Indicate whether the statement is true or false
The demand for unionized labor will generally be more elastic, and it will be more difficult for the union to achieve above-equilibrium wages when
a. there are no close substitutes for the unionized workers. b. the domestic producers of the good produced by the unionized workers face weak competition from foreign suppliers of the good. c. the cost of employing the unionized workers is a large part of the total cost of the product that they produce. d. the demand for the product produced by the unionized workers is highly inelastic.