When the yield curve is downward sloping:
A. people are expecting an economic slowdown.
B. people are expecting higher inflation in the future.
C. short-term yields are lower than long term yields.
D. people could be expecting a tightening in monetary policy.
Answer: A
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The MRS of the indifference curves in the above figure
A) equals 1/2. B) equals 2. C) changes when moving along any one of the curves. D) is constant along a particular indifference curve, but changes from one indifference curve to the next.
A major difference between tax systems in developing and developed country is that
a. developing countries rely on direct taxes, and developed countries rely on indirect taxes b. developing countries rely on indirect taxes and developed countries rely on direct taxes c. developing countries rely on domestic taxes and developed countries rely on taxes on foreign trade d. developing countries rely on ‘forced saving' and developed countries tax saving directly e. there are no significant differences
The law of increasing costs causes the production possibilities curve to be bowed outward from the origin
Indicate whether the statement is true or false
Studies of human decision making have found that people are reluctant to change their minds
a. True b. False Indicate whether the statement is true or false