A one-year bond has an interest rate of 5% today. Investors expect that in one year, a one year bond will have an interest rate equal to 7%
According to the expectations theory of the term structure of interest rates, in equilibrium, a two-year bond today will have an interest rate equal to A) 3.0%.
B) 5.0%.
C) 5.5%.
D) 6.0%.
D
Economics
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One prominent debate over macroeconomic policy centers on the question of whether monetary and fiscal policy should be used to try to stabilize the economy
a. True b. False Indicate whether the statement is true or false
Economics
Which of the following is a characteristic of a monopoly?
a. rising average total costs b. one buyer c. rising fixed costs d. a product without close substitutes
Economics