Author Question: A trade-off between aggregate output and inflation A) is theoretically possible, but has never ... (Read 215 times)

ericka1 · **on:** Jun 30, 2018

A trade-off between aggregate output and inflation

A) is theoretically possible, but has never been observed in practice.
B) may exist in the short run, but not in the long run.
C) may exist in the long run, but not in the short run.
D) exists in both the short run and the long run.

Question 2

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