The expectations theory suggests that
A) the yield curve should usually be upward-sloping.
B) the yield curve should usually be downward-sloping.
C) the slope of the yield curve depends on the expected future path of short-term rates.
D) the slope of the yield curve reflects the risk premium incorporated into the yields on long-term bonds.
C
You might also like to view...
The kinked demand curve is based on the idea that
A) you will follow my price increase but not my price cut. B) you will follow my price cut but not my price increase. C) you will follow all price changes I might initiate. D) you will not follow my behavior at all.
Firms that spend the greatest percentage of their revenue on advertising tend to be firms that sell
a. highly-differentiated consumer goods. b. goods produced by natural monopolies. c. agricultural products. d. products with a limited shelf life such as milk and lettuce.