Unlike the segmented markets theory, the expectations theory attributes the slope of the yield curve to
A) tax considerations.
B) the fact that short-term bonds are not perfect substitutes for long-term bonds.
C) the market's view of future short-term interest rates.
D) the variance in the inflation rates over the business cycle.
C
Economics
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Refer to Figure 2-8. What is the opportunity cost of producing 1 ton of coconuts in Costa Rica?
A) 3/8 of a ton of pineapples B) 2/3 of a ton of pineapples C) 1 1/2 tons of pineapples D) 100 tons of pineapples
Economics
If the opportunity costs of production for two goods is different between two countries, then
A) only one country can be made better off by trade. B) trade will only benefit both countries if one can lower its opportunity costs. C) trade cannot benefit either country. D) mutually beneficial trade is possible.
Economics