Suppose that financial market participants now expect a future tax cut and 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) The yield curve will become flatter.
C) The yield curve will become horizontal.
D) The yield curve will become downward sloping.

A

Economics

You might also like to view...

In order to increase sales the firm can

a. Increase the reference price for the product b. Decrease prices c. Differentiate their product d. All of the above

Economics

The value of the marginal propensity to consume

a. can exceed 1. b. is always between 0 and 1. c. can be less than 0. d. is always greater than 1.

Economics