Under the expectations hypothesis, a downward-sloping yield curve suggests:
A. this is a trick question, the yield curve always slopes upward.
B. investors expect future short-term interest rates to fall.
C. investors expect future short-term interest rates to rise.
D. investors expect future short-term interest rates to remain constant.
Answer: B
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Assume that at the current level of output a firm's marginal cost and average variable cost of production are both decreasing
Based on this, we can conclude that the marginal product and average product of the firm's variable input(s) are both increasing. Indicate whether the statement is true or false
The nation listed below whose economy currently comes closest to a free market is
a. North Korea. b. Germany. c. People's Republic of China. d. Cuba.
Economists study perfect competition
a. because many markets are perfectly competitive. b. for its descriptive realism. c. to establish a benchmark by which to measure the performance of the economy. d. All of the above are correct.
What is the difference in the quantity of coffee demanded in Quahog when the price changes from $4 per pound to $3 per pound?
a. The quantity decreases by 1,990 pounds per year.
b. The quantity increases by 1,990 pounds per year.
c. The quantity decreases by 2,000 pounds per year.
d. The quantity increases by 2,000 pounds per year.