If the yield curve slope is flat for short maturities and then slopes steeply upward for longer maturities, the liquidity premium theory (assuming a mild preference for shorter-term bonds) indicates that the market is predicting
A) a rise in short-term interest rates in the near future and a decline further out in the future.
B) constant short-term interest rates in the near future and further out in the future.
C) a decline in short-term interest rates in the near future and a rise further out in the future.
D) constant short-term interest rates in the near future and a decline further out in the future.
C
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As more economic development occurs
A) the population growth rate increases. B) technological progress slows. C) capital accumulation decreases. D) the population growth rate decreases.
Are all goods economic goods? Are all economic goods also goods? Explain
What will be an ideal response?
Gross domestic product equals the sum of consumption, investment, and government purchases.
Answer the following statement true (T) or false (F)
For a nation's real GDP per capita to rise during a year:
A. consumption spending must increase. B. real GDP must increase more rapidly than population. C. population must increase more rapidly than real GDP. D. investment spending must increase.