Unlike the segmented markets theory, the expectations theory attributes the slope of the yield curve to
A) tax considerations.
B) the fact that short-term bonds are not perfect substitutes for long-term bonds.
C) the market's view of future short-term interest rates.
D) the variance in the inflation rates over the business cycle.
C
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The U.S. government spent over $4 trillion in budget year 2018.
Answer the following statement true (T) or false (F)
When China embarked on market changes towards urbanization and manufacturing in 1978, urban disposable incomes were 2.6 times greater than rural net income. By 2008 they were 3.3 times bigger
Which of the following have the market changes sketched above have most likely NOT caused? A) Increased income inequality between rural and urban populations B) A movement towards a bell-shaped distribution of income C) An increased Gini ratio D) The Lorenz curve for income to move further away to the line of equality
Official reserve assets include all of the following EXCEPT
A) foreign currencies. B) gold. C) special drawing rights. D) gifts to foreign countries.
Suppose the economy is on the intermediate range of the aggregate supply curve. Which of the following would reduce both real GDP and the price level?
a. A decrease in aggregate supply. b. An increase in aggregate supply. c. A decrease in aggregate demand. d. An increase in aggregate demand.