Under the expectations theory if market participants expect that future short-term rates will be higher than current short-term rates, the yield curve will
A) slope upward.
B) slope downward.
C) be flat.
D) slope upward, slope downward, or be flat, depending on risk, liquidity, cost of information, and tax considerations.
A
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Cyclical unemployment is caused by
A) technological change. B) fluctuations in the business cycle. C) a dynamic economy in which people want to switch jobs sometimes. D) predictable shifts in production associated with different seasons.
"Purchasing power" of money:
a. Is the value of money measured in terms of how many goods and services it will buy. b. Is the value of a currency expressed in a foreign currency. c. By definition, falls over any given period of time. d. Is the value of money adjusted for price differences among countries. e. Correlates positively with the inflation rate.
The business structure that receives some of the benefits of corporations and of partnerships without some of the drawbacks of typical corporation creation is known as a
a. sole proprietorship b. general and limited partnership c. subchapter S corporation d. C corporation e. limited liability corporation or partnership
Tonya put $250 into an account three years ago. The first year he earned 6 percent interest, the second year 7 percent, and the third year 8 percent. About how about much does Tonya have in her account now?
a. $302.50 b. $306.23 c. $308.67 d. $309.39