The expectations theory suggests that
A) the yield curve should usually be upward-sloping.
B) the yield curve should usually be downward-sloping.
C) the slope of the yield curve depends on the expected future path of short-term rates.
D) the slope of the yield curve reflects the risk premium incorporated into the yields on long-term bonds.
C
You might also like to view...
If a technological change lowers the wage of unskilled workers, it is an example of:
A) a skill-biased technological change. B) an unskilled-biased technological change. C) a preferential-biased technological change. D) a statistical-biased technological changes.
Based on the data in the table above, what is the value of M2?
A) $2,950 billion B) $4,187 billion C) $7,978 billion D) $8,587 billion
Explain the logic behind the First Theorem of Welfare Economics
What will be an ideal response?
When attempting price regulation, a government faces what problem(s)?
A) limited information B) bribes C) uncooperative firms D) All of the above.