When speculators are right, they:
A) move consumption of goods from times when they have a high value to times when they have a low value.
B) move consumption of goods from times when they have a low value to times when they have a high value.
C) often decrease economic efficiency since they raise prices in the short term.
D) decrease the opportunity cost of current production.

Question

Quizplus · Accepted Answer

When speculators are right, they anticipate that the value of goods will increase in the future. As a result, they buy goods when they are relatively cheap and hold on to them until their value increases, at which point they sell them. This behavior moves consumption of goods from times when they have a low value to times when they have a high value.

When Speculators Are Right, They