Which of the following statements is not true of the yield curve for U.S. Treasury securities?
A. The yield curve shows the relationship among securities of different maturities.
B. The yield curve usually slopes upward.
C. The yield curve can shift over time.
D. The yield curve usually is inverted.
Answer: D
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In which case would you be most likely to expect inflation to occur?
A) The government runs a sustained government deficit by lowering taxes. B) The government runs a sustained government deficit by increasing purchases. C) The government runs a sustained primary deficit by increasing purchases. D) The government funds its sustained deficit by increasing the money supply.
Financial innovations may be expected to cause a decline in ________
A) financial frictions B) the credit spread C) the real interest rate on investments D) all of the above E) none of the above
If the poverty threshold is set at 50 percent of median income, and if the poverty line is $10,000 . what is median income?
a. $50,000 b. $20,000 c. $10,000 d. $5,000 e. $25,000
Like the two world wars, the Korean War (1950–53) produced shortages of resources, labor and output due to large-scale foreign military deployments and demands for the production of war-related goods and services
Indicate whether the statement is true or false