If the expected path of 1-year interest rates over the next five years is 2 percent, 4 percent, 1 percent, 4 percent, and 3 percent, the expectations theory predicts that the bond with the lowest interest rate today is the one with a maturity of
A) one year.
B) two years.
C) three years.
D) four years.
A
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Attractive landscaping increases the property values of surrounding homes, creating a marginal benefit. The figure above represents the market for monthly landscaping contracts
a) What is the marginal social benefit of the 40th contract? Of the 60th contract? b) What is the marginal private benefit of the 40th contract? c) What is the marginal external benefit of the 40th contract? d) What is the unregulated competitive equilibrium price and quantity? e) What is the efficient quantity? f) What is the amount of the deadweight loss?
Economists are skeptical that discrimination is employer driven because
a. discrimination cannot exist in markets. b. employers are not really interested in maximizing profit. c. employers typically base wages paid on the prevailing market wage. d. holding productivity constant, a profit-maximizing employer will hire the cheapest labor available.
The existence of economic losses induces firms to:
A. enter an industry, which shifts the market supply curve to the left and decreases market price. B. enter an industry, which shifts the market supply curve to the right and decreases market price. C. exit an industry, which shifts the market supply curve to the right and decreases market price. D. exit an industry, which shifts the market supply curve to the left and increases market price.
The core inflation rate excludes
A. Only energy prices for the airlines. B. Food and energy prices. C. Import prices. D. Entertainment and packaging prices.