According to the liquidity premium theory of the term structure, a flat 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.

C

Economics

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The PPP theory fails in reality for all of the following reasons EXCEPT

A) transport costs. B) monopolistic or oligopolistic practices in goods markets. C) the inflation data reported in different countries are based on different commodity baskets. D) restrictions on trade. E) inflation rates are unrelated to money supply growth.

Economics

The demand for Rice Krispies is more elastic than the demand for cereal in general

a. True b. False Indicate whether the statement is true or false

Economics