Suppose that financial market participants expect that the central bank will pursue a monetary expansion in the future. Also assume that the yield curve is initially upward sloping. Given this information, we would expect which of the following to occur?
A) The yield curve will become steeper.
B) i2t will increase.
C) i2t will decrease.
D) The yield curve will become downward sloping.
C
Economics
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An increase in the demand for loanable funds will occur if there is
A) an increase in the real interest rate. B) an increase in the nominal interest rate accompanied by an equal increase in inflation. C) a decrease in the real interest rate. D) an increase in expected profits from firm investment projects.
Economics
All of the points on a budget line result in combination of goods that expend all of her income.
Answer the following statement true (T) or false (F)
Economics