If discretionary fiscal policy creates a federal budget deficit, the economy must be experiencing falling output

Why do investors hedge using futures contracts?

A) they are seeking to increase liquidity B) they are willing to pay for a reduction in risk C) in order to provide a counterparty to speculators D) they are more flexible than forward contracts

The ability to lower the average costs of production as the quantity produced increases is called

a. Economies of scale b. Economies of scope c. Diseconomies of scale d. Diseconomies of scope