According to the expectations theory of the term structure
A) when the yield curve is steeply upward sloping, short-term interest rates are expected to remain relatively stable in the future.
B) when the yield curve is downward sloping, short-term interest rates are expected to remain relatively stable in the future.
C) investors have strong preferences for short-term relative to long-term bonds, explaining why yield curves typically slope upward.
D) yield curves should be equally likely to slope downward as slope upward.
D
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Which of the following statements is(are) FALSE?
I. Trade creation is always bad for countries. II. Trade diversion is always good for countries. III. Regional trade agreements never cause welfare losses. a. I b. II c. III d. I, II, and III
If a monopolist's price is $50 at 63 units of output and average total cost equals $43, then the firm's total profit is
A) $3,150. B) $2,709. C) $441. D) $7.