The difference between the yield on 3-month Treasury bills and 10-year Treasury notes is largest typically during:
A) recessions
B) expansions
C) periods of high inflation
D) when the yield curve is inverted
A
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Which of the following will cause a direct increase in consumption spending?
A) a decrease in net export spending B) an increase in planned investment C) an increase in disposable income D) an increase in government spending
At which interest rate is the present value of $80.25 one year from today equal to $75 today?
a. 4 percent b. 5 percent c. 6 percent d. 7 percent
The median voter theorem states that:
A. politicians choose policies that, on average, generate more benefits than costs for the average voter. B. the median voter tends to be the most informed voter. C. candidates whose policies reflect the preferences of the median voter are more likely to win an election. D. political success depends on candidates taking positions that are either to the right or to the left of the political center.
Economic models are used by economists to
A. Explain economic behavior. B. Develop economic policies. C. Predict economic behavior. D. All of the choices are correct.