According to the liquidity premium theory of the term structure, a slightly upward sloping yield curve indicates that short-term interest rates are expected to
A) rise in the future.
B) remain unchanged in the future.
C) decline moderately in the future.
D) decline sharply in the future.
B
Economics
You might also like to view...
The Herfindahl-Hirschman Index measures an industry's concentration of
A) employment. B) sales. C) profits. D) productive capital.
Economics
Predictions that natural resources such as oil will be essentially used up in the next few decades
a. have been frequently made for the past century but have always proven to be false. b. have usually been based on the quantity of proved reserves. c. have ignored the role of price in governing the quantities demanded and supplied. d. All of the above are correct.
Economics