The segmented markets theory
A) has difficulty explaining why yield curves usually slope up.
B) has difficulty explaining why yield curves usually slope down.
C) has difficulty explaining why yields on instruments of different maturities tend to move together.
D) provides a good explanation of why yields on instruments of different maturities tend to move together.
C
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In equilibrium, which of the following statements regarding the relative price of a tomato versus a book is CORRECT?
I. It is the opportunity cost of a tomato. II. It is how much the production of books must fall in order to produce another tomato. a. I b. II c. Neither is correct. d. Both are correct.
A change in the demand for apples could result from any of the following EXCEPT
A) a change in the number of buyers. B) increased preferences for fresh fruit consumption for health reasons. C) a change in the price of an apple. D) a change in the price of a banana. E) a change in income.