The discount rate represents the interest rate on

Firm X owns both a grocery store and the parking lot outside the grocery store. In order to increase the traffic at the store the owners of the store should

a. Increase the prices on the goods sold in the store b. Increase the parking rates c. All of the above d. None of the above

The expectations hypothesis suggests the:

A. slope of the yield curve depends on the expectations for future short-term rates. B. slope of the yield curve reflects the risk premium associated with longer-term bonds. C. yield curve should usually be upward sloping. D. yield curve should usually be downward sloping.