The expectations theory postulates that the term structure of interest rates is based on expectations regarding future inflation rates.
Answer the following statement true (T) or false (F)
True
The expectations theory postulates that the shape of the yield curve depends on investors' expectations about future inflation rates. According to the theory, the yield curve should be upward sloping when investors expect inflation, and thus interest rates, to increase, and vice versa. See 5-3: The Term Structure of Interest Rates
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Standards of right and wrong that influence behavior are known as
a. ethics. b. morals. c. a value system. d. ethical behavior. e. values.
In a manufacturing environment, direct labor costs initially flow
A) into the Materials Inventory account. B) into the Cost of Goods Sold account. C) into the Work in Process Inventory account. D) into the Finished Goods Inventory account.
To avoid problems in the appraisal process, which of the following should generally be minimized?
A. Evaluation of individual traits B. Evaluation of effective behaviors demonstrated C. Evaluation of individual results D. Evaluation of group results E. Evaluation of ineffective behaviors demonstrated
What are the arguments for and against the statutes of repose?
What will be an ideal response?