Speculation serves the market in which of the following ways?
A) It helps smooth out price fluctuations.
B) It raises the price of certain goods.
C) It manufactures a demand for goods that would not ordinarily be found.
D) It allows risk takers the ability to make large amounts of economic rent.
Correct Answer:
Verified
Q165: Speculators make their profits on
A)price differences in
Q166: Random walk theory says
A)throwing darts will pick
Q168: The actions of speculators
A)help smooth out price
Q172: The concept of "random walk" applies most
Q174: Speculators play a role in the economy
Q181: Over the long run, stock prices have
A)generally
Q185: If stock prices follow a random walk,
A)speculation
Q187: Composites of stock prices
A)are completely random and
Q208: Figure 9-1 Q220: What most frightens investors in the stock
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