According to this theory of the term structure, bonds of different maturities are not substitutes for one another
A) segmented markets theory
B) expectations theory
C) liquidity premium theory
D) separable markets theory
A
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The income effect implies that there is a positive relationship between
A) income and the unemployment rate. B) the unemployment rate and the inflation rate. C) aggregate supply and aggregate demand. D) monetary growth and interest rates.
Mergers often increase profit by
A) producing economies of scale. B) producing economies of scope. C) increasing efficiency of the firm. D) All of the above.
Selling a product at different prices when the price difference is unrelated to costs is a practice known as
A) price fixing. B) price monopolization. C) price discrimination. D) price differentiation.
Jim is negotiating a contract for a labor union. The union wants to increase members' real wages by 4 percent. The inflation rate is predicted to be 7 percent. To attain the union's goal, Jim needs to negotiate a raise in the nominal
a. wage of 4 percent b. wage of 7 percent c. wage of 11 percent d. rate of 3 percent e. rate of 28 percent