A testable proposition that predicts how people will react to changed circumstances is called a hypothesis

When short-term interest rates are expected to fall sharply in the future, the yield curve will

A) slope up. B) be flat. C) be inverted. D) be an inverted U shape.

For a given market demand curve, if the market clearing price increases, then the amount of producer surplus will

A) decrease. B) increase. C) become negative. D) none of the above due to insufficient information.