Answer:
This question lacks answers
A. currency swap.
B. arbitrage.
C. backwardation.
D. straddle.
<u>The answer is </u><u>b.</u>
Explanation:
Arbitrage is a common practice used to gain profits from inefficient markets. Since most financial markets are inefficient by nature, dealers and similar business entities that have an interest in this kind of business practice.
The profit in arbitrage is based on the <u>imbalance in the two prices</u> on each market respectively. The term is mainly used for financial markets and various financial instruments (securities, bonds, currencies).
In the example above, the dealer becomes an arbitrageur by making a profit from the difference in the yen/dollar exchange rate in two markets (NY and London.)
A tax cut that will last for only a year will not have a huge effect on the aggregate demand as the aggregate demand increases only when the tax cut is permanent.
The given statement is false.
<h3>What is a tax?</h3>
A tax is a liability imposed on the taxpayer to pay a specified sum to the government based on the income they have earned in the previous year.
When the cutting of taxes becomes permanent in the country, then the citizens can start to acquire more which will increase the spending. The families will expect that the tax cuts are for the longer term which now induces them to buy and spend more and also act as an addition to their incomes. This whole impact would eventually lead to rising in aggregate demand.
Therefore, the demand increases when the tax cuts are permanent rather than when tax cuts are for only one year.
Learn more about the tax cut policies in the related link:
brainly.com/question/13924294
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Ummm, Government does not fund nonprofits.
They function as consumers and producers because while they work, they are creating goods/ providing services that contribute to the economy. When they get paid, they become consumers who buy goods/pay for services.
