Which of the following is true of the segmented markets theory?
A) It assumes that borrowers have particular periods for which they want to borrow.
B) It assumes that lenders always lend for short periods.
C) It provides a good explanation for why yield curves usually slope upward.
D) It assumes that instruments with different maturities are perfect substitutes.
A
You might also like to view...
Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
In a cooperative form of business enterprise, a shareholder is entitled to
a. one vote. b. vote on the basis of number of shares owned. c. no dividends. d. tax exemption on profit.
Assume a group of firms has formed a cartel and the cartel is in engaged in joint profit maximization. As such, each firm, acting in its own interests, has an incentive to expand production up to the point at which:
A) its marginal cost equals the marginal revenue earned by the cartel. B) its marginal cost equals the cartel-determined price of the product being sold. C) its marginal revenue equals the cartel's marginal costs of production. D) its marginal cost equals the cartel-determined marginal revenue from the good being sold.
Keynes' speculative demand for money arises because
A) individuals are continually trying to maximize their wealth and income. B) money is necessary to finance transactions. C) there are costs to switching between money and interest-earning assets. D) capital gains on bonds held can be made when interest rates are rising.