Under the expectations theory, an upward-sloping yield curve indicates that investors expect future short-term rates to

What is the difference between diminishing marginal returns and diseconomies of scale?

What will be an ideal response?

A sustained change in the monetary growth rate will

A) immediately affect equilibrium real money balances by raising the money interest rate. B) eventually affect equilibrium nominal money balances by raising the money interest rate. C) eventually affect equilibrium real money balances by reducing the money interest rate. D) eventually affect equilibrium real money balances by raising the real interest rate. E) eventually affect equilibrium real money balances by raising the money interest rate.