According to the expectations theory of the term structure
A) when the yield curve is steeply upward sloping, short-term interest rates are expected to remain relatively stable in the future.
B) when the yield curve is downward sloping, short-term interest rates are expected to remain relatively stable in the future.
C) investors have strong preferences for short-term relative to long-term bonds, explaining why yield curves typically slope upward.
D) yield curves should be equally likely to slope downward as slope upward.
D
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What is meant by "the value of a statistical life"? Why is it calculated?How is it used by policymakers?
What will be an ideal response?
Which of the following statements is TRUE regarding the textbook used in this course?
A) The textbook presents only economic theory, so no value judgments are involved in the text. B) The textbook does not include normative statements. C) The microeconomic section of the book includes only positive analysis while the macroeconomic section includes normative analysis. D) The selection of topics included in the book involves value judgments as well as economic theory.
Each firm in a monopolistically competitive industry faces a downward-sloping demand curve because
a. there are many other sellers in the market. b. there are very few other sellers in the market. c. the firm's product is different from those offered by other firms in the market. d. the firm faces the threat of entry into the market by new firms.
Which of the following indicates taking an action to reverse the effect of official intervention on the domestic money supply?
A. Playing by the "rules of the game" B. Implementing capital controls C. Sterilization D. Adjusting the country's interest rates