What does a flat yield curve imply, according to the expectations theory of the term structure of interest rates?
A. The price level will not change in the future.
B. Future long-term rates are expected to rise.
C. Future long-term rates are expected to fall.
D. Future short-term rates are not expected to change.
Answer: D
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How is a periodic tenancy terminated?
A) By either party with notice not being necessary B) By appropriate notice by either party C) By appropriate notice by the tenant D) Automatically at the end of the lease term E) By appropriate notice by the landlord
Revenue and expense accounts are closed to the Income Summary account
Indicate whether the statement is true or false
The Food and Drug Administration (FDA) is investigating reports that Caplets Pharmaceutical Corporation is putting potentially harmful additives in Doze, a new pain-relief medication. The FDA's demands for particular documents from Caplets? A) must be specific and adequately describe the material being sought
B) must not be specific or an incriminating item might be overlooked. C) must be general so as to force an uncooperative party's compliance. D) may, but need not, be specific because the FDA is a federal agency.
Franchise Termination. H. C. Blackwell Co was a truck dealership owned by the Blackwell family. In 1961 they purchased a franchise from Kenworth Truck Co to sell Kenworth trucks. The franchise agreement had been renewed several times. In November 1975
the Blackwells began negotiations with Kenworth to renew the recently expired franchise, and disagreements arose concerning the franchise. On February 4, 1976, Kenworth wrote to Blackwell that the franchise would be terminated in ninety days unless Blackwell met twelve specific demands made by Kenworth. In trying to meet these demands—which included increased sales, a better method of keeping business records, and capital improvements at its dealership—Blackwell spent approximately $90,000. By the end of the ninety-day period, however, the demands had not been met, so Kenworth terminated the franchise. Blackwell sued Kenworth for damages on the grounds that Kenworth had wrongfully terminated the franchise agreement and, in so doing, had violated the Automobile Dealers' Franchise Act. During the trial, Kenworth's own regional sales manager stated that the demands imposed by Kenworth on Blackwell would have taken at least a year to meet. Has Kenworth wrongfully terminated the franchise under the Automobile Dealers' Franchise Act? Discuss fully.